Acwa Power, a leading Saudi developer, investor and operator of power generation, desalinated water and green hydrogen plants worldwide, has announced the financial close for the Shuaibah 3 IWP Project with a total investment cost of $821 million.

The project is a joint venture between Acwa Power (which has 68 per cent equity stake) and Water and Electricity Holding Company (Badeel).  The Acwa JV will complete the development, financing, design, engineering, construction, procurement, testing and commissioning, operation and maintenance of the project, under a 25-year offtake contract with Saudi Water Partnership Company (SWPC).

On completion, Shuaibah 3 IWP, located 110 km south of Jeddah, will become the world’s largest reverse osmosis desalination facility, it added.

Financial close for the $632 million senior debt facilities has been arranged on a non-recourse project finance basis from a consortium of financiers comprising Standard Chartered Bank, Mitsubishi UFJ Financial Group (MUFG), Abu Dhabi Islamic Bank (ADIB), Saudi National Bank (SNB), BOC, Saudi Investment Bank (SAIB), ICBC, KDB and Warba Bank.

In addition, the joint venture has secured Equity Bridge Loan facilities of $189 million from SABB and Riyad bank.