News

Home ENGIE in Saudi Arabia reaches financial close on Jubail 3B IWP

Press Releases

20 Oct 2021

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

The plant, supplying potable water to Jubail and Dammam, will have a 60MW capacity solar facility – the largest in-house solar capability for a desalination plant in the Kingdom

Saudi Water Partnership Company (SWPC), in association with 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 Ajlan And Bros Company (30%), has achieved financial close on the Jubail 3B Independent Water Project (IWP). Following the 29 April 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 22 June 2021. The project is part of the water schemes in Saudi Arabia developed under the public-private-partnership (PPP) structure. The consortium is developing and financing 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.

Located 65km 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 project will include a 60MWp capacity solar facility – the largest in-house solar capability for a desalination plant in the Kingdom – to optimize electricity consumption and reduce grid reliance. In addition, it will include one-day storage facilities and 380kV Electrical Special Facilities with ~59 km Overhead Transmission Lines (OHL).

The CEO of SWPC, Eng. Khalid Al-Quraishi, said: “Despite the fluctuations, liquidity crises and changing global market conditions, the Saudi Water Partnerships Company succeeded in completing the financial closure in close cooperation with the consortium and the group of lenders, which indicates the company’s efforts  to 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 content and balanced development, in order to achieve the strategic objectives 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. Reaching this stage in the project and starting construction works under such difficult circumstances is a complete indication of investor confidence in the investment environment in the Kingdom of Saudi Arabia and the suitability of the investment environment for the private sector.”

Turki Al Shehri, CEO of ENGIE in Saudi Arabia noted, “At ENGIE we are committed to bringing foreign direct investment into the Kingdom, supporting the development of clean energy solutions, local jobs creation and knowledge transfer. We commend SWPC for building consortiums such as this one, where they see the added value of both global and local expertise joining forces. Reaching financial close for the Jubail 3B project marks an important milestone in supporting the Kingdom’s vision of a sustainable future for all.” 

The consortium, led by 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 local content targets and commitments during all phases of the project. during the construction phase.

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 projects, representing today more than 30GW of gas-fired power generation capacities and 401 MIGD 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 is 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 more than 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

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, 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).

Related Articles

Shape Created with Sketch.