ACWA Power Consortium Inks $667 Million Deal for Desalination Plant

Deal News | Feb 05, 2025 | Zawya

ACWA Power Consortium Inks $667 Million Deal for Desalination Plant

ACWA Power, a leading developer in the power and water desalination sectors, announced that its consortium has finalized an agreement with the Saudi Water Partnership Company (SWPC) for the development of the Ras Mohaisen Independent Water Plant (IWP) in the Western Province of Saudi Arabia. The project will be executed under a Build-Own-Operate (BOO) model and is valued at $666.54 million. The desalination plant, expected to be operational in 2028, will have a 300,000 cubic metres per day capacity, split into two development phases. A 25-year water purchase agreement has been signed with SWPC by Ras Mohaisen First Water Desalination, an SPV with a 45% stake owned by ACWA Power. Other consortium members include Haji Abdullah Alireza & Partners Company and AlKifah Holding. The project also includes renewable energy infrastructure and is part of Saudi Arabia’s efforts to meet increasing water demands.

Sectors

  • Utilities
  • Renewable Energy
  • Construction and Engineering

Geography

  • Saudi Arabia – The project is located in Saudi Arabia's Western Province, impacting the regional water supply and infrastructure development.

Industry

  • Utilities – The project relates to water desalination, a crucial component of utilities, especially in arid regions like Saudi Arabia.
  • Renewable Energy – The project includes a 30 MW renewable energy power plant as part of its scope, indicating the integration of sustainable energy solutions.
  • Construction and Engineering – The development involves significant construction and engineering efforts for the desalination plant and associated infrastructure.

Financials

  • $666.54 million – Cost of constructing and operating the Ras Mohaisen desalination project as stated by ACWA Power.
  • $693 million – SWPC's cost estimation for the Ras Mohaisen desalination project.

Participants

NameRoleTypeDescription
ACWA PowerLead Consortium MemberCompanyACWA Power is a developer, investor, and operator of power generation and desalinated water plants.
Saudi Water Partnership Company (SWPC)Purchaser and PartnerCompanySWPC is a state-owned entity responsible for water projects planning and implementation in Saudi Arabia.
Ras Mohaisen First Water DesalinationSpecial Purpose VehicleCompanyThe SPV created for the specific purpose of carrying out the Ras Mohaisen desalination project.
Haji Abdullah Alireza & Partners CompanyConsortium MemberCompanyA stakeholder in the Ras Mohaisen project with a 35 percent share in the SPV.
AlKifah HoldingConsortium MemberCompanyA stakeholder in the Ras Mohaisen project with a 20 percent share in the SPV.