ACWA Power Signs Deal with Chinese-Saudi Consortium for Construction of Desalination Plant in Saudi Arabia
RIYADH, Saudi Arabia - ACWA Power, a Saudi-based company, has signed a deal with a Chinese-Saudi consortium for the construction of a desalination plant on the Red Sea coast.
The SR2.54 billion ($677 million) project will be built in Saudi Arabia's Western province and will mainly serve the Makkah and Madinah regions.
Once completed, the Rabigh 4 Independent Water Plant will double ACWA Power's desalination capacity in the area to 1.2 million cubic meters per day.
The consortium includes Beijing-based Power China, Qingdao-headquartered SEPCOIII, and Riyadh-located Wetico.
ACWA Power Chairman Mohammad Abunayyan expressed his pleasure with the "continuous progress" on the project, noting that it will create new employment opportunities during construction, as well as in operation and maintenance.
SEPCOIII Chairman Zhao Qiming emphasized that the deal marks yet another milestone in the ongoing partnership between ACWA Power and Chinese firms.
The relationship between the two began in 2009 when ACWA Power opened an office in Beijing.
The Rabigh 4 Independent Water Plant is the latest stage in the growing relationship between ACWA Power and Chinese firms.
In December 2022, the company signed a host of memorandums of understanding with Chinese companies covering financing, investment, engineering procurement, and construction contracts, as well as renewable energy equipment procurement.
ACWA Power now operates 16 desalination plants in four countries, 10 of which are in Saudi Arabia.
The company's presence in water desalination has led to key suppliers localizing their production in Saudi Arabia.
The Rabigh 4 Independent Water Plant will also contribute to the Kingdom's efforts to address its water security challenges.
Saudi Arabia faces significant water scarcity challenges, with an estimated 85% of its water resources being used by agriculture and industry, leaving only 15% for domestic use.
Overall, the deal between ACWA Power and the Chinese-Saudi consortium is a significant step towards addressing the Kingdom's water
Once completed, the Rabigh 4 Independent Water Plant will double ACWA Power's desalination capacity in the area to 1.2 million cubic meters per day.
The consortium includes Beijing-based Power China, Qingdao-headquartered SEPCOIII, and Riyadh-located Wetico.
ACWA Power Chairman Mohammad Abunayyan expressed his pleasure with the "continuous progress" on the project, noting that it will create new employment opportunities during construction, as well as in operation and maintenance.
SEPCOIII Chairman Zhao Qiming emphasized that the deal marks yet another milestone in the ongoing partnership between ACWA Power and Chinese firms.
The relationship between the two began in 2009 when ACWA Power opened an office in Beijing.
The Rabigh 4 Independent Water Plant is the latest stage in the growing relationship between ACWA Power and Chinese firms.
In December 2022, the company signed a host of memorandums of understanding with Chinese companies covering financing, investment, engineering procurement, and construction contracts, as well as renewable energy equipment procurement.
ACWA Power now operates 16 desalination plants in four countries, 10 of which are in Saudi Arabia.
The company's presence in water desalination has led to key suppliers localizing their production in Saudi Arabia.
The Rabigh 4 Independent Water Plant will also contribute to the Kingdom's efforts to address its water security challenges.
Saudi Arabia faces significant water scarcity challenges, with an estimated 85% of its water resources being used by agriculture and industry, leaving only 15% for domestic use.
Overall, the deal between ACWA Power and the Chinese-Saudi consortium is a significant step towards addressing the Kingdom's water
