Meed | SWPC moves Jubail-Buraydah bid deadline

SWPC moves Jubail-Buraydah bid deadline

16 July 2024

Saudi Water Partnership Company (SWPC) has extended by three weeks the tender closing date for a contract to develop and operate Saudi Arabia’s second independent water transmission pipeline (IWTP) project, which links Jubail and Buraydah.

The planned Jubail-Buraydah IWTP is a 603-kilometre (km) pipeline that can transmit 650,000 cubic metres a day of water.

SWPC has moved the deadline by which companies can submit their proposals for the contract from mid-July to 8 August, according to a source close to the project.

At least three teams are expected to submit proposals for the contract, MEED previously reported. They are:

Alkhorayef Water & Power Technologies (local) / Acciona (Spain) / Cobra Instalaciones (Spain)
Nesma Company (local) / Aljomaif Energy & Water (Jenwa, local) / Buhur Investment (local)
Vision Invest (local) / Abu Dhabi National Energy Company (Taqa, UAE)

The Jubail-Buraydah IWTP project is larger than the kingdom's first IWTP linking Rayis and Rabigh, which a consortium including the local Alkhorayef Water & Power Technologies Company and Spain's Cobra Instalaciones y Servicios will develop and operate at a cost of SR7.78bn ($2bn).

SWPC issued the request for proposals for the Jubail-Buraydah IWTP scheme to the prequalified bidders in October last year.

The state water offtaker qualified 22 companies to bid for the contract in April 2022.

The transaction advisory team for the client comprises the US/India’s Synergy Consulting as financial adviser and the local Amer Al-Amr and Germany’s Fichtner Consulting as legal and technical advisers, respectively.

SWPC’s obligations under the water transfer agreement will be guaranteed by a credit support agreement entered into by the finance ministry on behalf of the Saudi government.

The project is part of the kingdom’s National Water Strategy 2030, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of national urban supply, to reduce reliance on non-renewable ground sources.

SWPC’s Seven-Year Planning Statement calls for developing eight IWTP projects by 2028.

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Jennifer Aguinaldo