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
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
-
-
-
Riyadh seeks contractors for Expo Icon structure22 July 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Adnoc initiates oil production project at key offshore block
22 July 2026
Abu Dhabi National Oil Company (Adnoc Group) and its international partner, Pakistan International Oil (PIOL), have initiated a project to produce oil from Offshore Block 5 in Abu Dhabi’s waters, in which they are both stakeholders.
Adnoc, the leader on the project, intends to execute it through a front-end engineering and design (feed) competition, according to sources.
The Abu Dhabi energy giant recently selected the following three contractors for the Offshore Block 5 feed competition:
- CNPC Offshore Engineering Co (China)
- Saipem (Italy)
- Sinopec (China)
Offshore Block 5 covers 6,223 square kilometres in Gulf waters near the Zakum field and is located 100 kilometres northeast of the city of Abu Dhabi.
Abu Dhabi’s Supreme Council for Financial & Economic Affairs awarded a production concession agreement for Offshore Block 5 to Adnoc and PIOL in June 2025, with Adnoc holding the majority 60% participating interest and PIOL the other 40%.
Prior to that, Adnoc had signed an exploration concession agreement in August 2021 with PIOL, which is a consortium of four Pakistani state-owned companies – Pakistan Petroleum, Mari Petroleum Company, Oil & Gas Development Company and Government Holdings (Private).
The Pakistani consortium is understood to have invested up to $304.7m in exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 5.
Potential oil production from Offshore Block 5 is expected to contribute to Adnoc Group’s objective of achieving an oil production capacity of 5 million barrels a day (b/d) by 2027 – a campaign known as Accelerated Integrated Programme 5. The Abu Dhabi energy giant currently has a spare capacity of 4.85 million b/d.
Pakistan, which is heavily reliant on energy imports for its economy, will also benefit from potential oil production by its companies from the Abu Dhabi concession.
ALSO READ: Adnoc announces FID on $6.2bn Umm Shaif gas cap project
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17726345/main.jpg -
Chinese contractor appointed for 500MW Oman solar plant
22 July 2026
China's Shanxi Installation Group has secured an estimated $222m engineering, procurement and construction (EPC) contract for the 500MW Al-Kamil 1 solar independent power project (IPP) in Oman.
In a filing on the Hong Kong stock exchange, the company said the deal marks its first major project in the Middle East.
The contract covers the EPC, grid connection, testing and commissioning of the utility-scale solar photovoltaic (PV) plant, as well as 2.5 years of operations and maintenance.
A consortium comprising France's EDF Power Solutions, Oman National Engineering & Investment Company and OQ Alternative Energy signed the power purchase agreement for the project with Nama Power & Water Procurement Company (Nama PWP) in June.
Nama PWP is the sole procurer of new electricity generation capacity in Oman.
The Al-Kamil 1 solar IPP is EDF Power Solutions' third renewable energy project in Oman, following the 500MW Manah 1 solar PV IPP and the 120MW JBB wind IPP.
As MEED has previously reported, the Al-Kamil 1 project is part of Nama PWP's renewable energy development pipeline, which also includes the 400MW Sinaw and 280MW Marsa solar IPPs.
Nama PWP is currently tendering supervisory services for the Marsa IPP, with a bid submission deadline of 26 July.
The pipeline also comprises the 800MW Mahout and 300MW Duqm 2 wind IPPs, both targeted for commissioning between 2027 and 2029.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17725741/main.jpg -
Fluor wins feed contract for key Bahrain aromatics facility
22 July 2026
Bahrain’s Gulf Petrochemical Industries Company (GPIC) has awarded US-based consultant Fluor a contract for front-end engineering and design (feed) on an aromatics facility in the country.
The project will be an expansion of GPIC’s existing petrochemicals facility in Bahrain’s downstream complex in Sitra, which produces ammonia, urea and methanol.
The new aromatics facility will utilise “commercially-proven process technologies” to produce approximately 1.2 million metric tonnes a year (t/y) of paraxylene and 500,000 metric t/y of benzene, Texas-headquartered Fluor said.
Paraxylene and benzene are critical building blocks for plastics, polyester fibers and packaging materials, supporting global demand for high‑performance consumer and industrial products.
Founded in 1979, GPIC is a joint venture of Bahraini state energy enterprise Bapco Energies, known at the time as Nogaholding; chemicals giant Saudi Basic Industries Corporation (Sabic); and Petrochemical Industries Company – a subsidiary of state energy conglomerate Kuwait Petroleum Corporation. The three partners hold equal stakes of 33.3% in GPIC.
GPIC utilises locally available natural gas as feedstock to manufacture high-quality chemicals and fertilisers for domestic consumption and export, including 1,200 metric tonnes a day (t/d) of ammonia, 1,200 metric t/d of methanol and 1,700 metric t/d of granular urea.
ALSO READ: Bahrain taps consultants for studying use of nuclear power
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17725737/main1255.jpg -
Firms submit bids for second Hassyan SWRO pipeline contract
22 July 2026
Dubai Electricity & Water Authority (Dewa) has received bids from three contractors for a second pipeline contract relating to the Hassyan seawater reverse osmosis (SWRO) network expansion.
Project two requires contractors to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the plant's phase two network.
Local firm Tristar Engineering & Construction submitted the lowest offer of AED792.59m ($215.8m), according to tender results published by the state utility.
Green Oasis General Contracting (UAE) submitted a bid of AED800.02m ($217.8m) and Wade Adams Contracting (UAE) made the other compliant offer of AED989.65m ($269.5m).
In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.
Earlier in July, eight contractors submitted bids for project one of the Hassyan pipeline network expansion.
Dewa also has a third contract out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.
Project three was tendered on 26 January and has a bid submission deadline of 29 July.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17723861/main.jpg -
Riyadh seeks contractors for Expo Icon structure
22 July 2026
Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has asked contractors to express interest in the construction of the Icon, one of the key landmarks at the site.
The structure will be located at the entrance of the Expo 2030 Riyadh site, within the Collaboration Precinct.
ERC issued the expressions of interest notice on 20 July. The deadline for submissions of interest is 23 July.
The structure will be connected to the metro station and will serve as a gateway to the event.
It will be 66 metres tall and will comprise an observation platform, food and beverage outlets and other features.
The total built-up area will be approximately 16,279 square metres and it will be able to accommodate more than 1,450 visitors an hour during the event.
The contract duration is 29 months from the start of construction.
ERC tendered the contract for the construction of the Saudi Arabia pavilion at the site in May.
The pavilion is a major asset located within the venue's KSA District, on the eastern side of the Expo 2030 Riyadh masterplan, within the Loop of Nations district.
Construction progress
The tendering of the pavilion structure followed swift progress on the site’s infrastructure development works.
In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.
The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.
These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners. That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems, and electric vehicle charging stations.
The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – are split into three packages:
- Lot 1 covers the main utilities corridor;
- Lot 2 includes the northern cluster of the nature corridor;
- Lot 3 comprises the southern cluster of the nature corridor.
The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.
The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17723204/main.jpg