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Taqa secures financing for Saudi water project: A consortium comprising Abu Dhabi National Energy Company (Taqa), Saudi’s Vision International Investment Company (Vision Invest) and the Gulf Investment Corporation (GIC) has reached financial close on the AED 1.5 bn Juranah Independent Strategic Water Reservoir in Makkah, according to a press release (pdf). Some 82% of the financing for the project was secured in debt funding from local and international lenders, the statement notes. No information was disclosed on the remaining portion of the funding.
The project will be supported by solar: The strategic tanks are expected to have a total storage capacity of 2 mn cbm and operational tanks with a capacity of 500k m3 and supporting solar energy units to reduce electricity consumption but the generation capacity of the solar energy unit is unclear.
Who’s in? Local and international lenders funded around 82% of the project, with participation from Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB) and Commercial Bank of Dubai (CBD).
More about the project: The project will be executed under a build, own, operate, and transfer (BOOT) model with a 30-year concession and is set to begin operations in 1Q 2027. The companies inked agreements for the project with SWPC in late December 2023 to address pressing water requirements throughout Saudi Arabia and manage peak demand for water in Makkah and Madinah during the Hajj season. Taqa owns a 35% shareholding in the project company and a 50% stake in the project’s operations and maintenance company. Details regarding the share distribution among the rest of the members of the consortium have not been disclosed.
