Saudi Arabia invites proposals for Al-Madinah 3 ISTP

Published: 16 June 2020 - 8:42 a.m.
By: Baset Asaba

Saudi Water Partnerships Company (SWPC) announced on Monday that it had issued Request for Proposals from pre-qualified developers for the Al-Madinah 3 Independent Sewage Treatment Plant (ISTP) project.

The public-private partnership (PPP) project, with a total capacity of 375,000 cubic metres per day (m3/day), is expected to start operations in the first quarter of 2024.

The Expression of Interest tender for the project was issued in January.

“SWPC will conduct a competitive process to select a developer or developer consortium for the development, financing, engineering, procurement, construction, implementation, ownership, operation, maintenance and transfer of the Project, together with associated infrastructure and facilities,” read a statement on SWPC’s website.

Under a 25-year Sewage Treatment Agreement (“STA”) with SWPC, a project company is to be incorporated to develop the Project and will treat the entire sewage capacity supplied by SWPC.

SWPC’s obligations under the STA will be supported by a credit support agreement from the Government of Saudi Arabia.

Last month, SWPC had pre-qualified six companies/consortiums to bid for the project. The list comprised Acciona Agua and International Water Distribution Company (Tawzea) consortium; FCC Aqualia, Alkhorayef Water & Power Technologies and Alfanar Company consortium; GS Inima Environment and Al Jomaih Energy and Water Company consortium; Marubeni Corporation; Metito Utilities, and Veolia Middle East.

Five of these companies, excluding Veolia Middle East, have been pre-qualified for the 150,000 cubic metres/day (m3/day) Buraydah 2 and 90,000 m3/day Tabuk 2 ISTP projects.

In early June, SWPC and developer consortium had announced the final closure of the Dammam West ISTP, the Kingdom's first sewage treatment project based on the PPP model.

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