|Financing underscores APICORP’s commitment towards supporting Saudi Arabia’s Vision 2030 and the Kingdom’s sanitization infrastructure|
APICORP provides USD40mn in financing towards Saudi Arabia’s first independent sewage treatment plant in Dammam, sponsored by the private sector; Total project facility amounts to USD160mn; ISTP Project is worth USD245mn; Financing underscores APICORP’s commitment towards supporting Saudi Arabia’s Vision 2030 and the Kingdom’s sanitization infrastructure.
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced today that it has provided USD40 million in financing to the Kingdom of Saudi Arabia’s first Independent Sewage Treatment Plant (ISTP) sponsored by the private sector – out of a total project finance facility worth USD160 million. 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 USD245 million, 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%, 40% and 20% respectively – by the Saudi Ministry of Environment, Water and Agriculture (MEWA) acting through the Saudi Water Partnership Company (SWPC).
The USD160 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, Chief Executive Officer of APICORP, said: “As a trusted financial partner to the region’s energy sector, we are pleased to play our part in supporting the first independent sewage treatment plant in Saudi Arabia. By utilizing world-class facilities and technologies, 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, said: ‘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 construction of the ISTP has already begun, with commercial operations scheduled to begin in July 2022. The project has a design capacity of up to 350,000 cubic meters per day and an average daily flow treatment capacity of 200,000 cubic meters per day.
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.
Furthermore, the project is expected to create job opportunities for Saudis and support overall sustainable development within the Kingdom.
The Arab Petroleum Investments Corporation (APICORP) is a multilateral development financial institution established in 1975 by an international treaty between the ten Arab oil exporting countries. It aims to support and foster the development of the Arab world’s energy sector and petroleum industries. APICORP makes equity investments and provides project finance, trade finance, advisory and research. APICORP is rated “Aa2” with stable outlook by Moody’s and its headquarters is in Dammam, Kingdom of Saudi Arabia.