meed-logo

line1 line2 line3
SIGN IN / REGISTER

Five banks agree $545m Rabigh 4 financing

5 September 2023

Register for MEED's guest programme 

A consortium of five local and international banks has agreed to provide SR2.045bn ($545m) of financing for the Rabigh 4 independent water producer (IWP) project in Saudi Arabia.

The Rabigh 4 seawater reverse osmosis (SWRO) IWP will have a capacity of 600,000 cubic metres a day and require a total investment of SR2.54bn, funded by long-term debt and equity.

The banks that have agreed to provide senior debt on a non-recourse project finance basis are:

  • Standard Chartered Bank (UK)
  • Saudi National Bank (local)
  • Riyad Bank (local)
  • Saudi Investment Bank (local)
  • Bank of China (China)

A team led by Saudi utility developer Acwa Power won the contract to develop the project. The team signed a 25-year water-purchase agreement (WPA) with Saudi Water Partnership Company (SWPC) in April this year. 

The team includes local firm Haji Abdullah Alireza & Company (Haaco) and Bahrain’s Almoayyed Contracting.

The consortium submitted a levelised water cost (LCW) offer of SR1.7162 ($0.458) a cubic metre for the contract.

The team subsequently formed Rawabi Water Desalination Company as the project’s special-purpose vehicle, in which Acwa Power maintains a 45 per cent equity stake.

In July, the company awarded a consortium of Chinese firms Power China and Sepco 3, and local firm Wetico the project's engineering, procurement and construction (EPC) contract.

The Saudi government will support SWPC’s obligations under the 25-year WPA.

Project scope

MEED understands the project scope includes developing 1.2 million cubic metres of storage tanks, and extending and connecting to the existing electricity transmission substation.

The Rabigh 4 SWRO plant will service the Mecca and Medina regions, which see a spike in demand during Ramadan and the annual hajj season.

Rabigh 4 is the seventh IWP scheme launched by SWPC as part of the kingdom’s water sector privatisation initiative.

Netherlands-based KPMG Professional Services is the client’s lead and financial adviser on the project, while UK-headquartered Eversheds Sutherland and Canada-based WSP are the legal and technical advisers, respectively.

Further awards

Saudi Arabia has awarded five IWP contracts with a combined total capacity of 2.4 million cm/d since 2018-19. These are Rabigh 3, Shuqaiq 3, Yanbu 4, Jubail 3A and Jubail 3B.

Yanbu 4 has been renamed Ar-Rayis 1 following the integration of the Rayis-Yanbu independent water transmission pipeline into the scheme.

In June last year, SWPC also signed a 25-year WPA for the Shuaibah 3 IWP with a consortium led by Acwa Power and Public Investment Fund (PIF)-owned Badeel, at a value of about SR3bn. The plant has the same capacity as Rabigh 4 and will require an investment of SR3bn.

Unlike the seven greenfield IWPs, this project involves the conversion of the desalination plant at the Shuaibah 3 independent water and power project (IWPP) into an SWRO facility. 

In December, SWPC tendered the contract to develop the 300,000-cm/d IWP in Ras Mohaisen. It expects to receive bids by 1 October.

SWPC plans to procure 50 independent water infrastructure projects, according to its latest Seven-Year Statement covering the years 2022-28.

In addition to the Rabigh 4 and Ras Mohaisen IWP schemes, SWPC’s latest IWP pipeline includes the following:

  • Jubail 4 and 6
  • Jizan 1
  • Shuqaiq 4
  • Rayis 2
  • Tabuk 1
  • Ras al-Khair 2
  • Ras al-Khair 3
https://image.digitalinsightresearch.in/uploads/NewsArticle/11121670/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • EtihadWE to auction Al-Zawra power generation assets

    8 June 2026

     

    Register for MEED’s 14-day trial access 

    Etihad Water & Electricity (EtihadWE) is preparing to auction used power generation assets from its Al-Zawra facility in Ajman.

    The 200MW Al-Zawra gas-fired power plant was developed by the former Federal Electricity & Water Authority (Fewa), which was succeeded by EtihadWE.

    The sale includes gas turbines, generators and associated balance-of-plant equipment from the existing generation facility.

    The main equipment being offered comprises two GE Vernova / General Electric heavy-duty gas turbines. The units are PG 9171E / 9E machines designed for dual-fuel operation using natural gas and distillate. The package also includes two generators.

    EtihadWE said the assets will be sold on an “as is, where is” basis, with interested parties able to arrange site visits and inspections, subject to the relevant approvals.

    According to industry sources, the utility’s two power plants in Ajman and Ras Al-Khaimah have been out of service since 2021, and the Ajman plant was decommissioned in 2023. 

    Companies interested in taking part in the auction should contact:
    Mohamed.Shabeer@etihadwe.com
    khaled.reda@etihadwe.ae
    Horizon.PMO@etihadwe.ae
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17143852/main.jpg
    Mark Dowdall
  • Kuwait plans to award $988m upstream contract within 30 days

    8 June 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) is planning to officially award a $988m project contract to India’s Larsen & Toubro within 30 days, according to industry sources.

    The contract is focused on developing Jurassic Light Oil (JLO) export facilities and upgrading the existing export network.

    Kuwait’s Central Agency for Public Tenders (Capt) has approved the award of the contract for the construction of export crude storage facilities and upgrades to the country’s oil export infrastructure.

    Now, talks are expected to take place between KOC and Larsen & Toubro to finalise the contract details.

    Just two companies submitted bids for the contract in October last year.

    The bidders were:

    • Larsen & Toubro (India): KD303.5m ($988m)
    • Petrofac (UK): KD310.6m ($1.01bn)

    Following bid submission, state-owned Kuwait Petroleum Corporation (KPC) discussed the potential cancellation of the contract tender due to the bids coming in significantly over budget and Petrofac becoming ineligible to win contracts in Kuwait.

    The financially troubled engineering company was temporarily banned from participation in tenders in Kuwait’s oil and gas sector in December last year.

    It was given the ban after the company announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.

    Despite holding talks about the potential cancellation of the tender, KPC ultimately decided to proceed with the contract award process because it considered the project a high priority.

    One source said: “Around the same time, projects worth around $8bn were cancelled because of bids coming in over budget, but this one has gone ahead because KPC sees it as an essential project.”

    The project was originally tendered in November 2024, with a bid deadline of 1 December the same year.

    The bid deadline was extended several times before bids were ultimately submitted.

    Kuwait’s oil and gas sector is in turmoil as a result of the ongoing regional conflict that started on 28 February when the US and Israel attacked Iran.

    Amid the ongoing conflict, Kuwait’s Ministry of Finance has stopped publishing its monthly report with details about revenues from oil exports.

    While there are no official figures available, many experts believe that the country failed to export crude oil during April and May.

    This is likely to have a severe impact on the country’s economy, which relies on oil exports for approximately 90% of government revenues.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17143767/main.png
    Wil Crisp
  • Amea Power signs 1.5GWh battery storage EPC contracts

    8 June 2026

    UAE-based Amea Power has signed engineering, procurement and construction (EPC) contracts with China Energy Engineering Corporation (China Energy) for two standalone battery energy storage system (bess) projects in Egypt with a combined capacity of 1,500 megawatt-hours (MWh).

    The contracts cover the 500MWh Horus battery storage project in Zafarana and the 1,000MWh Nefertiti battery storage project in Benban.

    The agreements were signed on 4 June in the presence of Mahmoud Esmat, Egypt’s minister of electricity and renewable energy, Sheikh Hussein Al-Nowais, chairman of Al-Nowais Investments and Amea Power, and Ni Jin, chairman of China Energy.

    The projects are part of Egypt’s wider programme to expand energy storage capacity and support the integration of renewable energy into the national grid.

    According to the Ministry of Electricity & Renewable Energy, Egypt plans to increase battery storage capacity to 14,320MWh by 2028.

    The ministry said the expansion of battery storage is required to support the growing share of solar and wind power generation, improve grid stability and reduce reliance on fossil fuels.

    The signing ceremony also included an agreement between Amea Power, China Energy and Chinese battery manufacturer Gotion to establish a battery storage manufacturing facility in Egypt.

    The planned factory will have an annual production capacity of 3,000MWh.

    Amea Power previously signed capacity purchase agreements with the Egyptian government to develop the country’s first standalone bess projects in 2025.

    In March, the government announced it had signed power-purchase agreements for several renewable energy and battery storage projects with a combined capacity of 5.6GW.

    These include a 900MW wind power project in the Red Sea Governorate, along with a 2,000MW solar power plant and a 2,000MWh battery storage facility in the Qena Governorate. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17143364/main.jpg
    Mark Dowdall
  • Opec+ approves fourth consecutive oil output quota hike

    8 June 2026

    The Opec+ alliance of oil producers has agreed a fourth increase in its oil output targets in as many months, even though the conflict involving Iran, the US and Israel is still preventing several members from pumping more crude.

    The war has disrupted oil flows via the Strait of Hormuz, creating a severe supply crisis. Key Opec+ members, including Saudi Arabia, have been unable to supply customers in full since the end of February. The crisis for Opec+ deepened when the UAE left Opec after almost 60 years of membership.

    Seven core members of Opec+ – which comprises Opec countries and a group of non-Opec states led by Russia – raised their output quotas from April to June by almost 600,000 barrels a day (b/d).

    In practice, however, the group’s production has fallen sharply due to export cuts by Gulf members, averaging 33.19 million b/d in April compared with 42.77 million b/d in February, according to Opec figures.

    At the latest meeting of Opec+ oil ministers on 7 June, the seven members agreed to increase targets by 188,000 b/d from July, Opec said in a statement. This matches the June hike, which was adjusted down from monthly increases of 206,000 b/d in April and May to take account of the UAE’s exit.

    Iraq’s oil output quota will rise by 26,000 b/d from July under the agreement, an oil ministry spokesperson told Iraq’s state news agency.

     

    On 5 June, oil prices fell to about $93 a barrel as traders gained confidence that renewed conflict between the US and Iran was becoming less likely. Prices were close to $72 before the war began on 28 February.

    Brent crude rose sharply at the start of this week after Iran launched ballistic missiles at Israel on the night of 7 June, heightening fears that US-Iran peace talks might once again collapse. Israel has since retaliated with strikes in western and central Iran, despite calls from US President Donald Trump not to respond to the Iranian missiles.

    Brent crude jumped by around 4.5% early on 8 June and was trading at $97.52 a barrel as of 11am GST.

    The seven key Opec+ members are increasing production as part of the gradual unwinding of a 1.65 million b/d production cut agreed in 2023 by the coalition, which at the time included the UAE.

    From July, the seven have about 567,000 b/d of the original cut left to return to the market – taking into account the UAE’s exit from 1 May – according to Reuters calculations.

    That would imply the remainder of the cut will be unwound by the end of September if Opec+ maintains monthly hikes of about 188,000 b/d in August and September.

    The seven of the 21 Opec+ members who met on 7 June were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia and Oman. In recent years, only these seven – plus the UAE when it was a member– have been involved in the group’s output-policy decisions.

    In a separate meeting on Sunday attended by all Opec+ members, ministers made no change to the group-wide output policy in place until the end of 2026, Opec+ said in another statement.

    Opec+ is also reviewing members’ oil production capacity to use as a reference for 2027 production baselines, from which quotas are set. On Sunday, the group reaffirmed the importance of completing the assessment, the statement said.

    ALSO READ: UAE to continue working with Opec, energy minister says

     

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17143267/main.jpg
    Indrajit Sen
  • Deme wins dredging work for Tunisian ports

    8 June 2026

    The Office de la Marine Marchande et des Ports (OMMP) has awarded Belgium’s Deme a contract to carry out dredging and marine works at three ports in Tunisia.

    The project covers works at Sousse, Menzel Bourguiba/Bizerte and Rades/La Goulette. Deme will first construct containment dykes at the ports of Menzel Bourguiba and Sousse. The two ports are located more than 200 kilometres apart, which the contractor says will require careful planning, coordination and optimised logistics.

    The second phase involves extensive dredging works at all three locations, for which Deme will deploy a trailing suction hopper dredger.

    The project will use three distinct approaches to sustainably and efficiently manage dredged material, tailored to the characteristics of each location.

    In Sousse and Menzel Bourguiba, the material will be reused for land reclamation. In Bizerte, a combined approach will be adopted, with part of the material used for reclamation at Menzel Bourguiba and the remainder disposed of offshore. In Rades and La Goulette, all dredged material will be pumped ashore to a designated area.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17143268/main.jpg
    Colin Foreman