Juranah Independent Water Reservoir In Makkah Achieves Financial Closing
The Abu Dhabi National Energy Company (TAQA), in collaboration with Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), has a significant milestone in advancing infrastructure development within Saudi Arabia. The consortium has announced the financial closing of the Juranah Independent Strategic Water Reservoir Project (ISWR-1) located in the Makkah region, marking a pivotal step towards enhancing the region's water security.
This achievement follows the consortium's formal agreement with the Saudi Water Partnership Company (SWPC) on 31st December 2023, underlining the project's strategic importance and the strong partnership between the entities involved. The project, with an estimated cost of around Dh1.5 billion, has garnered robust support from financial institutions, securing approximately 82% of its funding through debt financing. Notable banks such as Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB), and Commercial Bank of Dubai (CBD) have contributed to this significant financial arrangement, demonstrating confidence in the consortium's capabilities and the project's potential impact.
TAQA's involvement is substantial, holding a 35% stake in the project company and a 50% share in the operations and maintenance (O&M) company, showcasing its leadership and operational expertise in the sector. The Juranah ISWR-1 Project is designed to significantly bolster the potable water supply system, addressing emergency municipal water demand across the Kingdom, especially in the Makkah and Madinah regions during the critical Hajj season.
The project boasts a remarkable total storage capacity of 2,000,000 m³, developed under a Build, Own, Operate and Transfer (BOOT) scheme, with an additional 500,000 m³ capacity through operational tanks under a Design, Build, Transfer (DBT) model. This capacity is instrumental in enhancing the potable water transmission and distribution system within the region.
Omar Al Hashmi, Chief Executive Officer of Transmission & Distribution at TAQA, expressed his enthusiasm for the project's progress, stating, "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, the project exemplifies their dedication to excellence and their commitment to efficiently and reliably meeting the needs of the Saudi community. Furthermore, the involvement of GIC highlights its role in fostering the development of innovative, commercially viable infrastructure projects that are crucial for the economic growth of GCC economies.
The Juranah ISWR-1 Project represents a strategic initiative aimed at securing water resources for one of the most populous regions in Saudi Arabia, ensuring sustainability and reliability in water supply for years to come. Through this collaboration, TAQA, Vision Invest, and GIC have demonstrated their collective commitment to advancing infrastructure development and supporting the well-being of communities across the Kingdom.
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