Taqa, Vision Invest and GIC Consortium win water reservoir project in Makkah
Top officials during the signing ceremony.
The consortium, which also includes Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), has signed the relevant project agreements with the procurer Saudi Water Partnership Company (SWPC).
The Juranah ISWR-1 Project is the first of its kind in the Kingdom of Saudi Arabia under a BOOT (Build, Own, Operate, Transfer) model, reflecting active private sector involvement in essential water infrastructure development. Taqa will be the lead member for the operations and maintenance (O&M) activities through a specialized standalone O&M company, which will be co-owned by Vision Invest. The total project cost is estimated at Dhs1.5 billion, with debt funding expected to account for approximately 80 billion. Taqa is taking a 35 billion share in the project company and a 50 per cent stake in the O&M company.
To mark the occasion, a signing ceremony was held in Riyadh on Dec.31, 2023 in the presence of the Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arabia, Abdulrahman Al-Fadley.
Under the terms of the project, the consortium will be responsible for building, owning, and operating the water reservoir infrastructure for 30 years before transferring the ownership to SWPC. The project’s primary objective is to respond to emergency municipal water demand for all the Kingdom’s regions and to peak demand in Makkah and Madinah during the Hajj season. The strategic tanks have a total storage capacity of 2,000,000 m3. Additionally, operational tanks with a capacity of 500,000 m3 will be developed under a DBT (Design, Built, Transfer) model to support the potable water distribution system.
This landmark project is a testament to the collaborative efforts of Vision Invest, Gulf Investment Corporation, and Taqa. By integrating cutting-edge technology and sustainable practices, the consortium aims to ensure reliable and efficient water supply for the region.
Engineer Khalid Al-Quraishi, CEO of the Saudi Water Partnership Company, said: “The project is the first of its kind in Saudi Arabia with the participation of the private sector, which comes after the launch of the National Water Strategy. The project will operate under the ownership, operation, and asset transfer (BOOT) system, and the commercial operation of the project will begin in the second quarter of 2027.” He further added: “The project will contribute to reducing levels of electrical energy consumption, as the project includes solar energy units to reduce electricity consumption from the network and achieve the availability of stored water by 100 per cent, in addition to decreasing operating costs and supporting local content by increasing the percentage of localisation in business and human resources.”
Commenting on this achievement, Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, said: “We are honored to be part of this pioneering consortium that will contribute significantly to developing the water infrastructure of Makkah City. This project aligns with Taqa’s commitment to sustainable development and innovation, and we look forward to delivering a robust and reliable water supply system for the community.”
“Our collaboration with Taqa and GIC in this transformative project to improve Makkah City’s water infrastructure is a source of immense pride,” commented Omar Almidani, Vision Invest’s President and Chief Executive Officer. “It is an honour to deliver this project for the Saudi Water Partnership Company (SWPC), and together with our partners, we are dedicated to establishing a resilient and sustainable water storage system in Juranah. This reflects our shared commitment to excellence and our unwavering focus on efficiently and reliably meeting the community’s needs.”
Meshary Al-Judaimi, Group Head – Principal Investment of GIC, stated: “GIC is a leading investor in the infrastructure projects and intends to continue to play a major role in utilities projects in the GCC. We are proud to co-develop this strategically important project in the Kingdom.” Mr Al-Judaimi further added: “Winning the Juranah ISWR-1 project reinforces GIC’s role in supporting private sector participation in the development of the GCC economies.”
The Juranah Independent Strategic Water Reservoir Project marks a historic step toward securing water resources in the region and exemplifies the Kingdom’s dedication to fostering public-private partnerships for sustainable development. Taqa recently announced its new growth targets for 2030.
