(MENAFN) Saudi energy company ACWA Power has signed a water purchase agreement for the Rabigh 4 Independent Water Plant, which will have a capacity of 600,000 cubic meters per day and will be located on the Red Sea coast of the kingdom. ACWA Power, which is backed by the Public Investment Fund, announced in a press release that the Saudi Water Partnership Company (SWPC) will be the only buyer of services for the project. The signing of the 25-year WPA between Rawabi Water Desalination Co., a partially owned project company of ACWA Power, and SWPC was confirmed by the company in a bourse filing on Wednesday. The agreement covers the development, construction, operation, and ownership of the water desalination plant, which will use reverse osmosis technology.
ACWA Power also revealed that the agreement includes the development of associated infrastructure and facilities of the plant, such as potable water tanks with a capacity of 1,200,000 cubic meters. The company stated that the contract value is SR2.54 billion ($677 million) and that the financial close for the project is expected during the third quarter of 2023. ACWA Power currently operates 16 desalination plants across four countries, 10 of which are located in Saudi Arabia.
Mohammad Abunayyan, Chairman of ACWA Power, emphasized the company's commitment to developing efficient and reliable projects that meet the practical water needs of the community. He added that the company's contribution to Saudi Arabia's clean water strategy has been significant, and that they remain dedicated to advancing their support with their upcoming facility, which will set a new standard in terms of capacity and sustainability. The project is designed to consume less electricity, lower operating costs, and support domestic content in terms of supply chain and employment, according to SWPC CEO Khalid bin Zuwaid Al-Quraishi.
The Rabigh 4 Independent Water Plant will display the impact of reverse osmosis technology in action, according to Al-Quraishi. The plant is set to become operational in 2026 and is projected to boost the capacity in the Rabigh area by 100 percent. Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen Al-Fadhli said in a statement that these agreements will achieve the goals for water production projects in partnership with the private sector that supply industries, communities, and people across the Kingdom of Saudi Arabia. He further added that the Rabigh 4 plant is expected to directly serve pilgrims from around the world in the holy cities of Makkah and Madinah and households in the wider region.
ACWA Power's mission is to make electricity and desalinated water available in a reliable and responsible manner to support the social development and economic growth of nations by ensuring the ingenuity and entrepreneurship of the private sector. The Rabigh 4 Independent Water Plant is another step in that direction, and its construction will help meet the growing demand for water in the region.
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