Arabtec Holding, which is currently undergoing liquidation, has announced that its wholly-owned subsidiary, TARGET Engineering Construction Company, has been awarded a sub-contract from China-based power engineering contractor Shandong Tiejun Electric Power Engineering Company.

The sub-contract spans for a period of 14 months and is valued at $38.6m (SAR145m).

The scope of work covers construction of offshore marine works for Jubail-3A Independent Water Project (IWP) located at Jubail city in Saudi Arabia.

Jubail-3A IWP is the fourth seawater reverse osmosis (SWRO) desalination project to be awarded in Saudi Arabia over the last three years, as part of the largest public-private partnership (PPP) desalinated water procurement programme in the world. The plant will be commercially operational in the end of 2022, boasting a capacity of 600,000m3 per day.

In September, Saudi Arabia-based developer, investor, and operator of power generation and desalinated water plants ACWA Power signed a senior financing agreement valued at $650m (SAR2.4bn) for the IWP. A consortium led by ACWA Power alongwith Gulf Investment Corporation, and Al Bawani Water and Power Company was picked by Saudi Water Partnership Company (SWPC), to develop, design, finance, construct, commission as well as operate and maintain the plant.

The project was awarded at a world-record tariff of $0.41/m3 for desalinated potable water. Once completed, the plant will supply drinking water to Riyadh, Qassim, and Eastern provinces in the kingdom throughout the year.