Alkhorayef Water and Power Technologies Company-led (AWPT) consortium has achieved the financial closing on the Rayis-Rabigh independent water transmission pipeline (IWTP) project.

The project will be completed in 30 months, with commercial operations starting by the second quarter of 2026, the company said in a statement to the Saudi stock exchange on Sunday.

The statement said the capital expenditure for the project's physical assets and infrastructure will be 2.4 billion Saudi riyals ($640 million),  adding that  the contract value is SAR8.4 billion ($2.24 billion).

AWPT owns 50 percent of the consortium, which includes Cobra Instalaciones y Servicios and Orascom Construction.

The project will have a transmission capacity of 500,000 cubic metres per day (m3/day) and will stretch over 150 kilometres in length to provide Makkah and Madinah regions with drinking water. It also includes a strategic reservoir with a capacity of 340,000 m3.

In September 2023, AWPT-led consortium signed a 35-year Build-Own-Operate-Transfer (BOOT) agreement with state-owned the state-owned Saudi Water Partnership Company (SWPC) for the IWTP project.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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