Utilities Middle East

$280mn financial close reached for Jeddah ISTP

The Jeddah Airport 2 ISTP was awarded under the BOOT concession model

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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.

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