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Tuesday, June 2, 2020

Despite of the Evolving COVID-19 Pandemic, the ‘First of its Type’ Independent Sewage Treatment Plant in KSA Reaches Financial Closing

• The project value is $245m (SAR920m)
• Dammam ISTP project moves ahead

Dammam, Saudi Arabia, -Monday 1 June 2020 [ AETOS Wire ]
Saudi Water Partnership Company (SWPC) and the consortium led by the Metito Group and comprising the companies; “Metito”, “Mowah”, and “Orascom Construction” (the Consortium) today confirmed the successful financial closing of the Kingdom’s first independent sewage treatment plant (ISTP) to be awarded to the private sector under the Build Own Operate Transfer (BOOT) concession model with a tenor of 25 years, in Dammam West. The project is worth US$245M with the investment made up of a combination of equity and debt.
The Dammam ISTP has a designed capacity of 350,000 cubic meters per day and an initial capacity of 200,000 cubic meters per day and will serve the western region of Dammam.
Khaled AlQureshi, Chief Executive Officer Saudi Water Partnership Company, 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. 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.”
The Consortium scope of work covers the entire investment and includes the EPC and O&M which will be executed by a wholly owned Saudi-based company established by the Consortium to serve the project – the Dammam West Company for Water.
On behalf of the Consortium, Rami Ghandour, Metito Managing Director, said: “We are delighted to share a strategic milestone for the water and wastewater industry in MENASA region. Today marks the successful financial close of the Dammam ISTP, a pioneering project in the Kingdom and the region. The financial structure for this project is a testament to its importance, scale and impact, and the confidence of all stakeholders in its sustainable success.”
The successful financial closing marks a significant achievement for the Saudi Government and the wider region, demonstrating sustained commitment to development in the water sector.
Advisors:
Project Sponsors International Legal Advisors: Covington & Burling LLP
Project Sponsors Local Legal Advisors: Hatem Abbas Ghazzawi & Co
Project Sponsors Financial Advisor: Synergy Consulting
Project Sponsors Insurance Advisor: Willis Towers Watson
Lenders International Legal Advisors: Allen & Overy LLP
Lenders Local Legal Advisors: Baker & McKenzie Habib Al Mulla
Lenders Insurance Advisor: INDECS Consulting Limited
LTA: ILF & Partners Engineering
Contacts
Shaimaa Aly, +97124420423
shaimaa.aly@newgatecomms.com

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