ACWA Power achieves financial close for $821mn Shuaibah 3 IWP project
Once complete, the IWP project, which is located 110km south of Jeddah will become the world’s largest reverse osmosis desalination facility
Saudi-based ACWA Power has announced the financial close for the Shuaibah 3 independent water project (IWP), with a total investment of US $821mn. The company said the project is a joint venture (JV) between itself (with a 68% equity stake) and Water and Electricity Holding Company (Badeel).
The project involves the development, financing, design, engineering, procurement, manufacture, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of desalination, the statement said.
It added that the JV will complete the development, financing, design, engineering, construction, procurement, testing and commissioning, operation and maintenance of the project, under a 25-year off-take contract with Saudi Water Partnership Company (SWPC).
In June 2022, ACWA Power signed a $1.15bn deal to develop one of the largest windfarms in the world and, in August 2022, Doosan Enerbility won an EPC contract for the Shuaibah 3 IWP.
Once complete, Shuaibah 3 IWP, located 110-kilometres south of Jeddah, will become the world’s largest reverse osmosis desalination facility.
The financial close for the $632mn senior debt facilities was arranged on a non-recourse project finance basis from a consortium of financiers. These comprised of: Standard Chartered Bank, MUFG, ADIB, SNB, BOC, SAIB, ICBC, KDB and Warba Bank. In addition, the JV secured Equity Bridge Loan facilities of $189mn from SABB and Riyad bank, the statement outlined.
ACWA Power added that it achieved the Shuaibah 3 IWPP financial close for the refinancing of the existing senior facility denominated in US dollar and Saudi Riyal, the proceeds of which would be utilised by Shuaibah Water and Electricity Company (SWEC) for varied financial commitments, including the prepayment of its existing senior debt facility, financing expenses and for tax purposes. ACWA Power holds a 30% effective equity stake in SWEC, it stated.
In early October 2022, ACWA Power signed MoUs to develop SWRO and CCGT plants in Senegal and, later in the month, DEWA said its Jebel Ali complex won a Guinness World Record title.
SWEC has successfully replaced both dollar and riyal tranches of existing outstanding senior debt ($415mn) and (SR285mn) respectively, with $420mn and SR285mn facilities respectively, repayable semi-annually with the final instalment to be paid in January 2026.
The financial close for the $497mn senior debt facility arranged on a non-recourse project finance basis was from a consortium of financiers comprising Société Generali, Al Rajhi Bank, Riyad Bank, Saudi Fransi Bank and ADCB.
