DUBAI - A consortium led by Saudi Arabian utility developer ACWA Power has signed financing agreements for a $650 million desalination project in the Saudi industrial city of Jubail.

The desalination plant, Jubail-3A IWP, will use sea water reverse osmosis to yield a capacity of 600,000 cubic metres per day.

The plant is being financed through limited recourse ring-fenced project financing from Al Rajhi Bank, Abu Dhabi Islamic Bank, Riyad Bank and Mizuho, ACWA said in a statement. Earlier this month, Riyad Bank and Bank AlJazira provided equity bridge loans for the project.

It did not disclose the value of the financing.

ACWA Power, in consortium with Gulf Investment Company (GIC) and Al Bawani Water and Power Company, was awarded the project earlier this year at a tariff of $0.41 per cubic metre.

"We take great pride in having broken the record for the lowest tariff for desalinated potable water, thrice in the last three years, including for the Jubail-3A IWP project," ACWA Chief Investment Officer Rajit Nanda said in the statement.

Jubail-3A IWP, due to begin commercial operation towards the end of 2022, is part of a Saudi public-private partnership desalinated water procurement programme.

A consortium of Sepco III, Power China and Abengoa is contracted for the engineering, procurement and construction of the plant. An affiliate of First National Operations & Maintenance Co (NOMAC) signed an operations and maintenance agreement.


(Reporting by Yousef Saba; editing by David Evans) ((; +971562166204))