APICORP in $40mn financing for Saudi’s first ISTP

Published: 10 June 2020 - 10:35 a.m.
By: Baset Asaba

The Arab Petroleum Investments Corporation (APICORP) says it has provided $40mn in financing to Saudi Arabia’s first Independent Sewage Treatment Plant (ISTP) sponsored by the private sector – out of a total project finance facility worth US$160mn

Financing for the facility was provided in collaboration with The National Commercial Bank (NCB) and Sumitomo Mitsui Banking Corporation Europe Limited (SMBC).

The total cost of the project stands at approximately US$245mn, and is in line with the Saudi Vision 2030 reform plan goal for the optimal use of water resources and to encourage private sector participation in economic development initiatives.

Located in Dammam, the Dammam ISTP was awarded to a consortium which comprises Metito, Mowah Company CJSC, and Orascom Construction – who each own 40 per cent, 40 per cent and 20 per cent respectively – by the Saudi Ministry of Environment, Water and Agriculture (MEWA) acting through the Saudi Water Partnership Company (SWPC).

The US$160 million financing facility, which has a tenor of 27 years, will be used for the overall development, engineering, construction, operation and maintenance of the Dammam ISTP.

Dr Ahmed Ali Attiga, CEO of APICORP, said, “The project will upgrade the existing infrastructure and enable it to effectively recycle waste water. Partnerships between the private and public sectors in financing sustainable energy projects is key and remains a strategic focus for APICORP now more than ever. We are pleased to contribute to the Kingdom’s Vision 2030 through this initiative that enhance the sustainability of the Kingdom’s utilities network.”

On behalf of the consortium, Rami Ghandour, Metito managing director, added, “While the world is navigating unprecedented and testing times due to the evolving COVID-19 pandemic, we are delighted to achieve a strategic milestone for the water and wastewater industry in the region with the successful financial closing of the Dammam ISTP. The financial structure for this pioneering project and the backup received from reputable local and international banks and financial institutions is a clear testament to its importance, impact and to the confidence of all stakeholders in its sustainable success.”

The Dammam ISTP will boast world-class and energy efficient facilities including inlet works, an inlet balancing tank, a treatment plant, pumping facilities, final effluent discharge and ISTP outfall pumping station, an electrical sub-station and connections as well as sludge treatment beneficial use facilities.

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