ACWA Power led consortium achieves financial close for the US$1.59 billion Red Sea Project
25 February 2022
A consortium led by ACWA Power, and composed of SPIC Huanghe Hydropower Development Company and Saudi Tabreed Cooling Company, has achieved financial close for the US$1.302 billion senior debt facilities for the Red Sea multi-utilities project.
ACWA Power had been appointed by The Red Sea Development Company (TRSDC) to design, build, operate and transfer The Red Sea Project’s utilities infrastructure.
TRSDC – the developer behind the world’s most ambitious regenerative tourism project, is the procurer of the project – where all the utilities are being procured under a single offtake arrangement, unique for a contract of this kind.
The project includes the provision of renewable power, potable water, wastewater treatment district cooling and solid waste treatment for 16 hotels, an international airport and infrastructure that make up phase one of The Red Sea Project in Saudi Arabia.
The scope of the project also includes construction of three seawater reverse osmosis (SWRO) plants totaling a capacity of 32,500 cubic meters per day at the project, a waste management centre and an innovative sewage treatment plant (STP).
The senior debt project is financed through a combination of US dollar denominated and Saudi Riyal denominated soft mini-perm and long-term financing provided by a consortium of Saudi Arabian and international banks, including the Al Rajhi Bank, APICORP, Bank Saudi Fransi, Riyad Bank, Saudi British Bank, Saudi National Bank and the Standard Chartered Bank.
The contract was procured as an independent public-private partnership (PPP), intended to cover the design, construction and operation of the systems providing utilities, accompanied by the associated networks and infrastructure.
The Red Sea Project is not investing any of its own capital and is instead committing to purchase its utilities from the consortium for the next 25 years. Saudi Arabia’s sovereign wealth vehicle the Public Investment Fund (PIF), which owns TRSDC, will provide the guarantee for the 25-year offtake agreement.
Related
-
SPPC released RFQ for 5300MW solar and wind projects under NREP
16 September 2025
-
$500M financing secured for Oman–GCC electrical interconnection project
15 September 2025
-
ACWA Power and ADB to build Central Asia’s first wind power plant with BESS
15 September 2025
-
LONGi and Nofar Energy forge landmark partnership for Romania’s largest solar project
13 September 2025
-
Saudi Arabia issues tenders for two PPP water projects
12 September 2025
-
Consortium wins $500m Saudi wastewater treatment project
11 September 2025