Alkhorayef Water-led consortium inks SAR 7.8 bln deal

Logo of Alkhorayef Water and Power Technologies Co. (AWPT)

Alkhorayef Water and Power Technologies Co. (AWPT) announced that the company-led consortium signed a build, operate, transfer (BOT) contract worth nearly SAR 7.8 billion with Saudi Water Partnership Co. (SWPC) for the development of Rayis-Rabigh Independent Water Transmission Pipeline Project (IWTP).

The financial impact of the 450-month contract is expected to be reflected in Q4 2023. There are no related parties, the company said in a Tadawul filing today, Sept. 13.

The project is the first of its kind in the Kingdom. It will have a transmission capacity of 500,000 cubic meters per day and will stretch over 150 kilometers in length, providing Makkah and Madinah regions with drinking water.

Construction will run for 30 months, after which commercial operations will kick off by the second quarter of 2026, for 35 years. 

AWPT, which owns 50% of the consortium, will now work with the relevant stakeholders to reach the project’s financial closure. Any developments will be revealed in due course, the company noted.

On July 24, AWPT announced that that the company-led consortium was selected by SWPC as the preferred bidder for the development of Rayis-Rabigh IWTP, with a revised tariff of SAR 1.25678 per cubic meter, according to Argaam's data.