TAQA, Vision Invest, GIC Finalize Financing for Makkah Water Reservoir Project

Abu Dhabi National Energy Company PSJC (TAQA), a prominent integrated utilities company across Europe, the Middle East, and Africa, together with Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), has announced the successful financial closing for the Juranah Independent Strategic Water Reservoir Project (ISWR-1) in the Makkah region of Saudi Arabia. This milestone marks the completion of all financing arrangements for this groundbreaking project by the consortium.

The financial closing for the Juranah ISWR-1 project comes after the consortium, comprised of TAQA, Vision Invest, and GIC, signed relevant project agreements with the Saudi Water Partnership Company (SWPC) on December 31, 2023. The project, valued at approximately AED 1.5 billion, has secured about 82% of its funding through debt from local and international banks, including Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB), and Commercial Bank of Dubai (CBD). This significant debt financing underscores the confidence financial partners have in both the consortium’s financial capabilities and the strategic importance of the project. TAQA holds a 35% stake in the project company and a 50% shareholding in the operations and maintenance (O&M) company, which is led by TAQA itself.

The Juranah ISWR-1 Project plays a crucial role in addressing emergency municipal water demand in the Kingdom, particularly in the Makkah and Madinah regions during the Hajj season. With a total storage capacity of 2,000,000 m³ under a Build, Own, Operate and Transfer (BOOT) scheme, and an additional 500,000 m³ capacity operational tanks under a Design, Build, Transfer (DBT) model, the project aims to significantly improve the potable water transmission and distribution system.

Omar Al Hashmi, Chief Executive Officer of Transmission & Distribution at TAQA, commented on this achievement, 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, this accomplishment reflects their dedication to excellence and their focus on efficiently meeting the needs of the Saudi community. Similarly, this project showcases GIC’s role in developing pioneering infrastructure projects that are vital for the growth of GCC economies.

In 2023, TAQA’s Transmission and Distribution business made significant strides through strategic collaborations, reinforcing resilience, and driving growth. While TAQA continued to expand its reach and build new smart infrastructure across the UAE, the Transmission and Distribution business advanced several international partnerships and investments to support its international business growth. The Juranah Independent Strategic Water Reservoir Project was one of four Transmission and Distribution projects explored or pursued outside the UAE last year. Additionally, TAQA signed a memorandum of understanding (MoU) in December 2023 to explore the possibility of becoming one of the shareholders in a project to develop a 900 km high-voltage direct current (HVDC) electricity subsea interconnector project between Greece and Cyprus. Prior to that, TAQA announced a strategic MoU for a feasibility study of an HVDC onshore infrastructure project in Romania. Furthermore, in 2023, TAQA invested GBP25 million (AED113 million) into Xlinks First Limited, aiming to lay the world’s longest HVDC subsea cables between the UK and Morocco to transport renewable power to the UK.

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