The Saudi Water Partnerships Company (SWPC) and the consortium of Cobra Instalaciones y Servicios (Cobra), and Saudi company Tawzea have achieved the financial closure of the Taif Independent Sewage Treatment Plant (ISTP) project, located near the city of Taif, in the Mecca Province.

The 320 million Saudi riyals ($85 million) project, with a total capacity of 270,000 cubic metres per day (m3/day), is funded by a local bank. It will be developed on a Build-Own- Operate-Transfer basis for period of 25 years, SWPC said in a statement on Sunday.

The statement said the project would be developed in two phases with first phase capacity of 100,000 m3/day expected to start operations in the third quarter of 2022.

The 170,000m3/day second phase would be developed, the statement noted, when the first phase's operational capacity exceeds the usage rates.

The plant would use Sequencing Batch Reactor (SBR) technology for wastewater treatment.

SWPC CEO Khalid Al-Quraishi, said that despite changing global market conditions, SWPC and the consortium succeeded in completing the financial closure in close cooperation with the group of lenders.

"Reaching this stage in the project and starting construction works under these 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," he said.

The project is the fifth to be closed within 24 months, according to the statement, adding that the plant would be managed and operated by the consortium's locally formed Taif Independent Water Plant Company.

The advisors on the project were Mizuho Bank as Lead and Financial Adviser; White & Case as Legal Adviser; and WS Atkins & Partners Overseas Engineering Consultants as Technical Adviser.

A total of 66 companies had submitted Expression of Interest documents for the project during the prequalification phase.

(Writing by Anoop Menon; Editing by Seban Scaria)


Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020