The Saudi Water Partnership Company (SWPC) in alliance with a consortium consisting of Spain-based Cobra Group and KSA-based International Water Distribution Company (Tawzea) has achieved financial closure on the Taif independent sewage treatment plant (ISTP).

The consortium will develop and finance the wastewater treatment plant and provide engineering, procurement, construction, implementation, ownership, operation, and maintenance services. The ownership will then be transferred based on a build-own-operate-transfer (BOOT) model to Saudi’s SWPC.

The first phase of the plant is scheduled to be completed in the third quarter of 2022, and can handle 100,000 cu. m per day, while the second phase will begin when the operational capacity at the plant exceeds the usage rates, and 170,000 cu. m will be added to its capacity.

Eng Khalid Al Quraishi, CEO of SWPC, said: “Despite the fluctuations, liquidity crises and changing global market conditions, the Saudi Water Partnerships Company and the Consortium succeeded in completing the financial closure procedures in close cooperation with the group of lenders, which indicates the company’s efforts.”

“SWP aims to provide full support for investment projects, and to enhance private sector participation in sustainable development by providing the opportunity for local and foreign investors to participate in the implementation of these projects.”

He added that this will help them in achieving sustainable development, providing job opportunities for young people, and supporting local product and balanced development, as well as the strategic objectives contained in KSA Vision 2030.

“These initiatives are also approved by the Saudi Council of Ministers to encourage private sector participation in economic development initiatives,” Al Quraishi added.

The project was funded via Islamic financing facilities and is third wastewater project to be procured under a public private partnership by the Saudi Water Partnerships Company (SWPC) and is part of $2 billion program of water and wastewater projects in Saudi launched in 2018.

The $85 million package received local bank funding, with multinational law firm Pinsent Masons advising on the project; with assistance from its  associated Saudi Arabia law firm AlSabhan & AlAjaji.

Commenting on the occasion, Mohamed Halawani, CEO of Tawzea, said: “This is an important long-term project in the Kingdom, that supports the confidence of all investors, project owners and the banking community In its sustainability and long-term success.”

“We are confident that with the continuous support of the SWPC for the Taif plant project, there will be other promising future opportunities that serve citizens and open the way for job opportunities for youth, develop the Saudi economy and achieve the Kingdom’s 2030 vision, in the future,” he added.

SWPC stated that the financial closure of this project is an important

 achievement for the Saudi government and the region. Additionally, it added that this is the fifth project to be closed in the last 24 months and that the investment environment in this sector is “fruitful and excellent”.

A Pinsent Masons team led by Partner Gurmeet Kaur advised SWPC on all aspects of the project documents, all construction documents and Islamic financing documents.

Kaur described reaching financial close on the transaction demonstrated the robustness and resilience of the Public Private Partnerships (PPP) in Saudi Arabia during the pandemic and “showcases  SWPC’s  commitment to its infrastructure pipeline and its vision for driving PPP’s in the Kingdom, working in partnerships with the private sector, against the background of a global pandemic.”

Multinational law firm Pinsent Masons advised on the project in Saudi Arabia, with assistance from our associated Saudi Arabia law firm AlSabhan & AlAjaji.