MARAFIQ joins Miahona, BESIX consortium in SAR 1.5B Al-Haer ISTP

Logo of Power and Water Utility Company for Jubail and Yanbu (MARAFIQ)

Power and Water Utility Co. for Jubail and Yanbu (MARAFIQ) received on July 16 an acceptance letter from Miahona Co. approving its inclusion in the consortium with Miahona and N.V. BESIX S.A. Sharjah branch, for Al-Haer independent sewage treatment plant (ISTP) project in Riyadh.

In separate statements to Tadawul, the two Saudi-listed companies said that the project was previously awarded to the consortium of Miahona and N.V. BESIX S.A. Sharjah branch. The project agreement was signed on March 10, 2024, with Saudi Water Partnership Co. (SWPC).

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MARAFIQ will join the consortium as an "other member" and will own 35% of the project company, while Miahona will maintain its 45% stake.

Excluding the finance cost, the project cost SAR 1.5 billion, the statement added.

The project aims to develop an ISTP in Al-Haer with a treatment capacity of 200,000 cubic meter per day. It also includes treated sewage effluent special facilities (TSESF), consisting of an approximately 32 km-long treated sewage effluent (TSE) transmission system with a capacity of 400,000 cubic meter per day.

In addition, it includes a TSE pumping station and TSE storage tanks with a capacity of 200,000 cubic meter.

The goal is to support and maximize the use of the treated sewage effluent in the Kingdom. The duration of the agreement is 25 years.

MARAFIQ said the positive financial impact of the operation of the project is expected to be reflected on the company's financial results starting from the first quarter of 2027.

In its statement, Miahona expected the positive financial impact from the project to appear on the company's financials starting from the date of financial closing, expected in third quarter of 2024, and from operations starting on the first quarter of 2027, as planned.