Saudi Water Partnership Company (SWPC) and the Metito Group-led consortium that includes Mowah and Orascom Construction have successfully achieved financial closing of the $245m independent sewage treatment plant (ISTP) in Dammam.
Dammam ISTP is the first project to be awarded to the private sector under the build own operate transfer (BOOT) concession model with a tenor of 25 years.
Metito noted that the financial close comes in spite of the global Covid-19 pandemic.
Metito managing director Rami Ghandour said: “While the world is navigating unprecedented and testing times due to the fast evolving Covid-19 pandemic, we are delighted to share a strategic milestone for the water and wastewater industry in MENASA region.
“We are confident that with the continued support from SWPC the Dammam ISTP will pave the way for similar developments in the future that can contribute to a more efficient water sector in the Kingdom and beyond.”
The ISTP project, which will serve the western region of Dammam, has a designed capacity of 350,000m³ per day and an initial capacity of 200,000m³ per day.
Covering the entire investment, the scope of work includes the engineering, procurement and construction (EPC) and operations and maintenance (O&M). Sorry, there are no polls available at the moment.
Dammam West Company for Water, a wholly owned Saudi-based company established by the Consortium to serve the project, will execute the work.
Funding for the project came from a combination of senior project finance loans in addition to equity contributions from shareholders.
A group of local and international banks, including The National Commercial Bank (NCB), Sumitomo Mitsui Banking Corporation Europe (SMBC), and Arab Petroleum Investment Corporation (APICORP) provided non-recourse project financing worth a total of $160m.
Achievement of the financial closing for the project marks a significant achievement for the Saudi Government and the wider region and demonstrates sustained commitment to development in the water sector.