Marubeni Corporation, a leading developer and operator of international power projects, said its consortium has started work on Shuqaiq 3 Independent Water Project in Saudi Arabia following the closing of a major project finance agreement.
The consortium, which includes Marubeni (45 per cent); Spanish sustainable solutions leader Acciona Agua (10 per cent) and Saudi groups Abdul Latif Jameel Commercial Development Company (30 per cent), Rawafid (15 per cent) set up a new company, Shuqaiq Three Company For Water, for the developement of the Saudi project.
The contract was awarded by Water and Electricity Company (WEC), the state-owned firm in charge of desalination and water treatment projects, to the Marubeni-owned company early this year. As per the deal, the water produced at the Shuqaiq plant will be sold to WEC for a 25- year period.
As per the deal, Shuqaiq Three Company For Water will be responsible for the construction, operation, and maintenance of the reverse osmosis (RO)-based desalination plant, which are independent and do not require a fire-based power plant for operation, reflecting the global trend towards renewable energy.
Once the project gets operational in 2021, the plant will generate 450,000 cu m of water per day that can cater to a population of 2 million people.
As a first step, Shuqaiq Three Company For Water has secured a limited-recourse financing loan worth $500 million for this ambitious project.
The loan was co-financed by six commercial banks - MUFG, Crédit Agricole Corporate and Investment Bank, The National Commercial Bank, The Norinchukin Bank, Samba Financial Group and Sumitomo Mitsui Banking Corporation.-TradeArabia News Service
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