Aljomaih Energy And Water Consortium Reaches Financial Close On Jubail–Buraydah Water Transmission Project

Aljomaih Energy and Water Company, in collaboration with Buhur Investment Company and Nesma Group, has successfully achieved financial closure for the Jubail–Buraydah Independent Water Transmission Pipeline Project. This project, valued at approximately SAR 8.5 billion ($2.26 billion), marks a significant development in Saudi Arabia's water infrastructure.

The ownership of the project is divided among Aljomaih Energy and Water Company with a 45% stake, Buhur Investment Company holding 35%, and Nesma Group owning 20%. The project involves the Stream Water Transmission Company and the Saudi Water Partnership Company (SWPC) through a Water Transmission Agreement.

The financing for this initiative was secured through a consortium of local and regional lenders. These include the National Infrastructure Fund (Infra), Al Rajhi Bank, Abu Dhabi Commercial Bank, Saudi Awwal Bank, The Arab Energy Fund, First Abu Dhabi Bank, The Saudi Investment Bank, and Bank Al Jazira. The entire financing structure adheres to Islamic finance principles.

Spanning 587 kilometers, the pipeline will transport 650,000 cubic meters of desalinated water daily. It also boasts a storage capacity of 1,634,500 cubic meters. Developed under a Build, Own, Operate, and Transfer (BOOT) model, it has a concession period of 35 years with construction expected to last four years. Operations are slated to begin in 2029.

Aljomaih Energy and Water Company is dedicated to enhancing water sustainability through this project. It aligns with the National Water Strategy 2030 by providing reliable desalinated water to over two million people with an availability rate of up to 98%.

Mr. Ibrahim Aljomaih expressed his views on this achievement: "The financial close of this strategic project reaffirms our commitment to supporting the Kingdom's National Water Strategy and Vision 2030 objectives. Through this partnership, which combines local expertise with global standards, we aim to achieve long-term water security and develop a resilient infrastructure that connects the Eastern and Qassim regions."

Eng. Adnan Buhuligah highlighted the project's focus on local content: "This financial close reflects the strength of our consortium and the trust our partners place in our vision... The project aims to achieve a local content contribution of no less than 45% during the construction phase and increase it to 70% during operations."

Buhur for Investment's Chairman Mutlaq bin Damouk Al-Ghuwairi emphasized their commitment: "Buhur for Investment is proud to participate in this consortium alongside Al Jomaih Energy and Water and Nesma Group., working jointly with the Saudi Water Partnership Company (SWPC) to develop a project that embodies the success of the public-private partnership model."

Faisal Alturki from Nesma Group added: "This achievement demonstrates what can be accomplished when national expertise unites behind a shared goal. Nesma is proud to contribute to a project that supports Saudi vision for sustainability..."

The SWPC plays a crucial role in managing public-private partnership projects within Saudi Arabia's water sector as part of its efforts towards achieving Vision 2030 goals.