Metito secures financing for $245m sewage treatment plant in Saudi Arabia

WCN Editorial Team 1 Jun 2020 MIDDLE EAST ENERGY & UTILITIES

Saudi Water Partnership Company (SWPC) and the Metito Group-led consortium have announced the closure of financing for the $245m independent sewage treatment plant (ISTP) in the country.

The project will be delivered by the private sector under the build own operate transfer (BOOT) concession model, in Dammam West.

Saudi Water Partnership Company CEO Khaled AlQureshi said: “Despite global volatility and liquidity issues, and ever-changing market conditions, SWPC and the Consortium were able to successfully reach financial closing, in close cooperation with the lenders group.”

The Metito Group-led consortium for the project includes Mowah, a water utility firm in Saudi Arabia, and Orascom Construction, an engineering, procurement and construction contractor in Egypt. Construction on the project has commenced in February 2020.

The project received $160m in non-recourse financing by 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).

With a designed capacity of 350,000m3 per day, the Dammam ISTP will have an initial capacity of 200,000m3 per day and will serve the western region of Dammam.

AlQureshi added: “This is a testament of SWPC’s commitment to support and encourage private sector participation in sustainable development by providing lucrative opportunities for local and foreign investors to participate in the implementation of lifeline water projects.

“This will achieve sustainable development, provide job opportunities for young people, and support local output and balanced development, in line with the strategic goals of the Kingdom’s “Vision 2030” and the initiatives approved by the Saudi Council of Ministers to encourage private sector participation in economic development.”

The consortium will be responsible for the entire investment and includes engineering, procurement, and construction (EPC).

Dammam West Company for Water, a Saudi-based wholly-owned company established by the consortium to serve the project, will be responsible for the operations and maintenance of the project.

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.”

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Construction is underway on the independent sewage treatment plant in Saudi Arabia. (Credit: Michal Jarmoluk from Pixabay)



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