Marafiq consortium closes $280m deal for financing of ISTP in Jeddah
Jeddah Airport 2 ISTP will treat 300,00cu m in stage one, with another 200,000cu m planned for stage two
Marafiq, a power and water utility company for Jubail and Yanbu, has said its consortium, comprising of key partners – Veolia and Amwal AlKhaleejiah – has signed an agreement with Saudi Water Partnership Company (SWPC) for the financial closing of a $280 million ISTP (Independent Sewage Treatment Plant) project in Jeddah, Saudi Arabia.
In a statement, the consortium partners said that they have issued a notice to proceed with the EPC contractor, as per the agreement with SWPC, despite the COVID-19 pandemic. Marafiq is the lead developer on Jeddah Airport 2 ISTP and has a wealth of experience as an integrated utility service provider to major industrial cities in Saudi Arabia.
Stage one of the project will treat 300,000 cubic metres of wastewater per day and is scheduled to be commissioned on January 31, 2023. The second stage is likely to add another 200,000 cubic metres per day when the new STP capacity exceeds specific utilisation rates.
According to the statement by Marafiq, the Jeddah Airport 2 ISTP will be developed on a build, own, operate and transfer (BOOT) concession model under a 25-year Public-Private Partnership (PPP) scheme.
Marafiq’s key partners Veolia and Amwal AlKhaleejiah will support the development, financing, engineering, procurement, construction, implementation, ownership, operation, maintenance, and transfer of the Jeddah Airport 2 ISTP (Independent Sewage Treatment Plant).
The total project costs have been structured as non-recourse project finance, with funding sourced from a combination of senior project finance loans by the National Commercial Bank (NCB) and equity contributions from shareholders.
Marafiq’s consortium has also succeeded in establishing a Saudi-based company to serve the project, the Jeddah Althaniya Water company, which will operate the plant for 25 years as part of an exemplary partnership between the public and private sectors, it added.
Marafiq’s President and CEO Abdullah K Al-Buainain said: “Marafiq is proud that it has shifted from a conventional utility service provider to a lead developer. Marafiq demonstrates its strength amongst Saudi corporations as it maintains reliable services that benefit the nation and support the 2030 vision.”
“Marafiq is honoured to have trusted relationships with local and international developers, as well as fiscal institutes. Marafiq is pleased to be able to support and strengthen the Saudi economy even during such challenging times. We are grateful to our partners Veolia and Amwal AlKhaleejiah, who have assisted us in reaching this stage in the project,” he added.
