Riyadh, Saudi Arabia: Saudi energy and water desalination developer ACWA Power, along with Haji Abdullah Alireza & Co (HAACO) and Al Moayyed Contracting Group (AMCG) signed a contract with a consortium for the $677 million Rabigh 4 Independent Water Plant (IWP) project.
The engineering, procurement and construction (EPC) contract was signed with a consortium of Power China, SEPCOIII, and WETICO for the 600,000 m3/day Rabigh 4 IWP that will mainly serve the Makkah and Madinah regions.
Financial close for the project is expected during the third quarter of 2023.
ACWA Power currently operates the Rabigh 3 IWP in the same area, the first desalination plant of its size in the private sector. With the addition of the Rabigh 4 IWP, ACWA Power will double its desalination capacity in the area to 1.2 million m3/day and to 6.8 million m3/day across its portfolio, making it the largest private producer of desalinated water globally.
The Water Purchase Agreement (WPA) of the project was signed earlier this year by the Saudi Water Partnership Company (SWPC) after a consortium of ACWA Power, HAACO, and AMCG emerged as the preferred bidder.
ACWA Power now operates 16 desalination plants in four countries, 10 of which are in Saudi Arabia. The company fulfils 30 percent of the Kingdom’s water demand. In 2022 alone, the company added 2.4 million m3/day of water desalination capacity via four desalination plants in Saudi Arabia, Bahrain, and the UAE, the highest in its history.
Speaking at the signing ceremony in Riyadh, Mohammad Abunayyan, Chairman of the board of directors of ACWA Power, said, “Our presence in water desalination has already led key suppliers to localise their production in Saudi Arabia, and this project will create new employment opportunities during construction, as well as in operation and maintenance, where they will be largely staffed by young local talents from the local Electricity and Water Academy that we have developed over the last decade.”