Jubail-Buraydah water pipeline decision imminent
23 October 2024
Saudi Water Partnership Company (SWPC) is expected to announce the bid results for a tender to develop and operate Saudi Arabia’s second independent water transmission pipeline (IWTP) project, which links Jubail in the kingdom’s Eastern Province and Buraydah in the Qassim region.
According to a source familiar with the project, relevant authorities “are reviewing the bids and a decision should come within at least a month”.
The planned Jubail-Buraydah IWTP is a 587-kilometre (km) pipeline that can transmit 650,000 cubic metres a day of water.
According to SWPC, the teams that submitted proposals for the contract in August are:
- Aljomaih Energy & Water (Jenwa, local) / Nesma Company (local) / Buhur for Investment Company (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.
Related read: SWPC focuses on desalination and sewage plants
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Siemens Energy wins $1.6bn Saudi deal
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
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Chinese builders go global
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Commentary
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EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
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