Utilities Middle East
$280mn financial close reached for Jeddah ISTP
The Jeddah Airport 2 ISTP was awarded under the BOOT concession model
Marafiq (Power and Water Utility Company for Jubail and Yanbu) is the lead developer in Jeddah Airport 2 ISTP (Independent Sewage Treatment Plant) and has a wealth of experience as an integrated utility service provider to major industrial cities in Saudi Arabia.
The Jeddah Airport 2 ISTP was awarded under the Build, Own, Operate and Transfer (BOOT) concession model, and will be developed under a 25-year Public-Private Partnership (PPP) model. Marafiq has partnered with Veolia, an Amwal AlKhaleejiah, who will support the development, financing, engineering, procurement, construction, implementation, ownership, operation, maintenance, and transfer of the Jeddah Airport 2 ISTP (Independent Sewage Treatment Plant).
Despite the COVID-19 pandemic consortium’s teams have issued a notice to proceed with the EPC contractor as per the agreement with SWPC. Stage one will treat 300,000m3 per day, scheduled to be commissioned on January 31, 2023. Stage two might add another 200,000m3 per day when the new STP capacity exceeds specific utilization rates. The $280mn 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. During these unprecedented times, SWPC and the Marafiq’s consortium team have driven the entire project flawlessly and have now brought it to its financial close.
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.