ACWA Power has secured financing and security agreements totalling 2.05 billion Saudi riyals (about US$547 million) for its Rawabi Water Desalination Company (Rabigh-4) Independent Water Plant (IWP) project, informs Zawya.
The funding was obtained through a consortium that includes local and global banks: Standard Chartered Bank, Saudi National Bank, Riyad Bank, The Saudi Investment Bank, and Bank of China. This funding arrangement spans a period of 27.5 years and is specifically tied to ACWA Power's equity commitment and its proportionate share in the debt service coverage account.
The Rabigh-4 IWP, which relies on reverse osmosis (RO) technology, will have a potable water production capacity of 600,000 cubic metres per day (m3/d) of desalinated water. The project also includes infrastructure features such as water tanks with a capacity of 1.2 million cubic metres.
The engineering, procurement, and construction (EPC) contract for the Rabigh-4 IWP was awarded earlier in July 2023 to a consortium composed of Power China, SEPCOIII, and WETICO.
Furthermore, in April 2023, the Saudi Water Partnership Company (SWPC) confirmed it had signed a water purchase agreement for the Rabigh 4 IWP with a consortium comprising ACWA Power, Haji Abdullah Alireza & Partners Company and Almoayyed Contracting Group, valued at 2.54 billion Saudi riyals (US$677 million). The agreement outlines the developers’ responsibilities to develop, construct, operate, and own a water desalination plant.
SWPC had previously selected the consortium comprising ACWA Power, Haji Abdullah Alireza & Company, and Al Moayyed Contracting Group as the preferred bidder for the Rabigh-4 IWP in February 2023.