Saudi Water Partnership Company (SWPC), the principal offtaker for water and wastewater projects in the Gulf Kingdon, announced on Monday the financial close for the $408mln Juranah Independent Strategic Water Reservoir (ISWR) project in Makkah.

The project agreements were signed on 2 January 2024.

The project will have a strategic storage capacity of 2,000,000 cubic metres and an operational tank capacity of 500,000 cubic metres to bolster the potable water distribution system, according to an SWPC press statement.

The Juranah ISWR will be executed under the Build, Own, Operate, and Transfer (BOOT) model, with commercial operations scheduled to commence in the first quarter of 2027.

SWPC CEO Khaled AlQureshi noted that the ISWR project is the first of its kind in Saudi Arabia to involve private sector participation in alignment with the National Water Strategy.

“The project’s concession will span 30 years, with direct investment from private sector amounting to 1.5 billion and guaranteeing 100 percent stored water availability, reducing operational costs, and enhancing local content by increasing the localisation of business and human resources,” said AlQureshi.

The consortium of Vision International Investment Company, Gulf Investment Corporation, and Taqa was declared the preferred bidder in November last year.

In a stock exchange statement dated 2 January 2024, Abu Dhabi National Energy Company (TAQA) said the total project cost is estimated at 1.5 billion UAE dirhams ($408 million), with debt funding expected to account for approximately 80 percent.

This project is expected to significantly enhance the water supply chain, serving residents and visitors of Makkah, as well as Hajj and Umrah pilgrims.

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

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