Yanbu 4 IWP mandates banks
Following the signing of a 25-year water purchase agreement (WPA) with Saudi Water Partnership Company (SWPC) for the Yanbu 4 IWP project on 28 February, project sponsors Engie and Mowah have mandated five financial institutions on a $480 million financing to back the scheme. Financial close is expected in May.
The desalination facility, located near Aar Rayyis, will produce 450,000 cubic metres per day (m3pd) at a tariff of SR1.7446 ($0.465227) per m3. Doosan Heavy Industries is EPC contractor. Commercial operation is scheduled for 2022.
The Engie-led team sounded out banks at the end of February, with the final lender line-up including: Standard Chartered, Apicorp, Korea Development Bank, MUFG and National Commercial Bank. Deloitte is advising local investor Mowah while SMBC is financial adviser to SWPC, with DLA Piper as legal counsel and ILF Consulting Engineers as technical adviser.
