TAQA, Vision Invest and GIC Consortium Announce Financial Closing for Juranah Independent Strategic Water Reservoir Project in Makkah
The project is the first of its kind in the Kingdom of Saudi Arabia
Active private sector involvement in essential water infrastructure development
Addressing municipal potable water demand across the Kingdom
Abu Dhabi, UAE – 4 June 2024: Abu Dhabi National Energy Company PSJC (TAQA), one of the largest listed integrated utilities in Europe, the Middle East and Africa, alongside Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), announced the achievement of the financial closing for the Juranah Independent Strategic Water Reservoir Project (ISWR-1) in Makkah region, Saudi Arabia. Together with Vision Invest and GIC, the consortium has successfully completed all financing arrangements for this groundbreaking project.
The Juranah ISWR-1 financial closing follows the signature by TAQA, Vision Invest, and GIC Consortium of the relevant project agreements with the Saudi Water Partnership Company (SWPC), held on 31 December 2023.
The project cost, worth around AED 1.5 billion, has been secured through approximately 82% debt funding from both local and international banks, including Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB) and Commercial Bank of Dubai (CBD), demonstrating strong confidence from financial partners in the consortium’s financial strength and the project’s strategic importance. TAQA holds a 35% stake in the project company and a 50% shareholding in the operations and maintenance (O&M) company, led by TAQA itself.
The Juranah ISWR-1 Project is pivotal in addressing emergency municipal water demand across the Kingdom, specifically in Makkah and Madinah regions during the Hajj season. With a total storage capacity of 2,000,000 m³, being developed under a Build, Own, Operate and Transfer (BOOT) scheme, and an additional 500,000 m³ capacity operational tanks under a Design, Build, Transfer (DBT) model, the project aims to significantly enhance the potable water transmission and distribution system.
Commenting on this achievement, Omar Al Hashmi, Chief Executive Officer, Transmission & Distribution, TAQA, said: “Achieving financial closure for the Juranah ISWR-1 Project is a significant milestone for TAQA and our partners. This project underscores our commitment to supporting sustainable development in the region and aligns with our strategy to expand our Transmission and Distribution business internationally.”
For Vision Invest, this reflects their shared commitment to excellence and their unwavering focus on efficiency and reliably meeting the Saudi community needs.
This project highlights GIC’s role in developing pioneering, commercially viable infrastructure projects that are essential for the growth of GCC economies.
In 2023, TAQA’s Transmission and Distribution business excelled through strategic collaboration, reinforcing resilience and driving growth. While TAQA continued to expand its reach and build new smart infrastructure across the UAE, the Transmission and Distribution business advanced a number of international partnerships and investments that will support its international business growth in the coming years. The Juranah Independent Strategic Water Reservoir Project was the fourth Transmission and Distribution project being explored or pursued outside the UAE last year. In December 2023, TAQA signed a memorandum of understanding (MoU) to explore the possibility of becoming one of the shareholders in a project to develop a 900 km high-voltage direct current (HVDC) electricity subsea interconnector project between Greece and Cyprus. Prior to that, TAQA announced a strategic MoU for a feasibility study of an HVDC onshore infrastructure project in Romania. Earlier in 2023, TAQA invested GBP25 million (AED113 million) into Xlinks First Limited, which aims to lay the world’s longest HVDC subsea cables between the UK and Morocco to transport renewable power to the UK.
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About TAQA
Established in 2005, TAQA is a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA has significant investments in power and water generation, water treatment and reuse, transmission and distribution assets, as well as upstream and midstream oil and gas operations. The Company’s assets are in the United Arab Emirates as well as Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom and the United States. For more information, please visit: www.taqa.com.
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About “Vision Invest”
Vision Invest is a leading Saudi Arabian development and investment holding company at the forefront of Public and Private Sector Partnerships in the Kingdom of Saudi Arabia, the Gulf Cooperation Council and beyond. Since 2002, Vision Invest has nurtured synergetic partnerships with leading local, regional, and global partners and refined a boutique investment model, anchored by the entrepreneurial spirit of our people, to deliver sustainable value to our clients through impact investments.
About Gulf Investment Corporation (GIC)
GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC is a principal investor that supports the development of private enterprise and economic growth in the region.
GIC has extensive experience in, and commitment to, the Utilities sector in the Region. GIC has been involved in the utilities sectors in the GCC from inception. GIC is a co-developer seven projects in the GCC with a total assets base of approximately USD 10 billion.
For more information about Gulf Investment Corporation, please visit http://www.gic.com.kw