ENGIE in Saudi Arabia reaches commercial close on Jubail 3B IWP

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ENGIE in Saudi Arabia reaches commercial close on Jubail 3B IWP

Saudi Water Partnership Company (SWPC), in association the consortium comprised of France-headquartered ENGIE (40%), Saudi based Nesma Company Limited (30%) and Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investment Company (30%), has achieved commercial close on the Jubail 3B Independent Water Project (IWP). Following the April 29, 2021, announcement by SWPC naming the ENGIE-led consortium as preferred bidder, a 25-year Water Purchase Agreement between SWPC and the ENGIE – Nesma – Ajlan consortium was signed on the 21st of June 2021 in the presence of His Excellency Eng. Abdulrahman Al Fadli, Chairman of the Board of SWPC and Minister of Environment, Water and Agriculture.

Located 65 km north of Dammam airport in the Kingdom of Saudi Arabia, the Jubail 3B IWP plant will produce 570,000 m3/day of potable water through reverse osmosis technology to supply the cities of Jubail and Dammam. The plant will include storage facilities for one operational day in addition to in-house renewable energy capacity to reduce grid electricity consumption throughout the desalination process. The project is part of the water schemes in Saudi Arabia developed under the public-private-partnership (PPP) structure. The consortium will develop and finance the desalination plant, which will be operated and maintained by ENGIE. The Jubail 3B project was awarded by SWPC as a build, own, operate (BOO) contract, with commercial operation expected in 2024.

The CEO of SWPC, Eng. Khalid Al-Quraishi, said “Despite the fluctuations, liquidity crises and changing global market conditions, the Saudi Water Partnerships Company and the Consortium succeeded in completing the financial closure procedures in close cooperation with the group of lenders, which indicates the company’s efforts. The Saudi Water Partnership Company will provide full support for investment projects, and to enhance private sector participation in sustainable development by providing the opportunity for local and foreign investors to participate in the implementation of these projects, thus achieving sustainable development, providing job opportunities for young people, and supporting local product and balanced development, in order to achieve the strategic objectives contained in “Saudi Arabia’s vision 2030” and the initiatives approved by the Saudi Council of Ministers to encourage private sector participation in economic development initiatives.”

Turki Al Shehri, CEO of ENGIE in Saudi Arabia noted “The Jubail 3B project award represents another milestone achievement for ENGIE as a long-term positive energy partner to the Kingdom. We commend SWPC for continuing to encourage private sector participation to support the development of large-scale infrastructure projects. Through our projects, and in close coordination with our partners, ENGIE remains committed to providing value-added services and knowledge transfer to the local workforce.”

The consortium, led by leading low-carbon energy and service solution providers, ENGIE, was awarded the Jubail 3B project in April 2021, after submitting a successful bid with tariff of SAR 1.591 halalas per cubic meter of potable water. The Jubail 3B IWP will create direct and indirect jobs opportunities during both the construction and operation phases, with a targeted 90% Saudization rate during the operation period. In support of nation-wide targets, ENGIE and the consortium commit to upholding the appropriate local content standards, gradually increasing through each phase of the project.

For more than 30 years, ENGIE has been supporting the Gulf countries in their strong and rapid economic growth through the joint development of independent power and water project, representing today more than 30GW of gas-fired power generation capacities and 5.8 million of drinkable desalinated water.

Today the Kingdom of Saudi Arabia’s 2030 Vision, makes a clear shift to more energy efficient initiatives that includes clean desalination solutions.  ENGIE wants to be at the forefront of this paradigm change in the power and water landscape, supporting the Kingdom in its low carbon transition by providing sophisticated and innovative desalination solutions.

About ENGIE in Saudi Arabia

ENGIE has been present in the region for almost 30 years. ENGIE develops its activities in partnership with Saudi actors on energy production, seawater desalination, district cooling, energy efficiency services and high value-added facilities management. We have 2000 employees and have mobilized over USD 7.9 Billion of capital investment in the Kingdom. ENGIE generates 7600 MW of power, equivalent to 10% of the installed capacity of Saudi Arabia and produces 176 MIGD of desalinated water per day, equivalent to 11% of market production.

About ENGIE Group

Our group is a global reference in low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally friendly solutions. Inspired by our purpose (“raison d’être”), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers. Turnover in 2020: 55.8 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris – Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG, MSCI Europe ESG, Euro Stoxx 50 ESG, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).

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