ACWA awards EPC contract for Rabigh 4 Independent Water Plant project

By Arya M Nair, Official Reporter
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ACWA awards EPC contract for Rabigh 4 IWP project's
Officials at agreement signing

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, along with Haji Abdullah Alireza & Co (HAACO) and Al Moayyed Contracting Group (AMCG), has signed an engineering, procurement, and construction (EPC) contract with a consortium of Power China, SEPCOIII, and WETICO for the 600,000 m3/day Rabigh 4 Independent Water Plant (IWP) project.

Located in the Kingdom’s Western Province on Saudi’s Red Sea coast, the total Rabigh 4 IWP project cost is valued at $677 million and will mainly serve the Makkah and Madinah regions. Financial close for the project is expected during the third quarter of 2023.

ACWA Power currently operates the Rabigh 3 IWP in the same area, the first desalination plant of its size in the private sector. With the addition of the Rabigh 4 IWP, ACWA Power will double its desalination capacity in the area to 1.2 million m3/day and 6.8 million m3/day across its portfolio, making it the largest private producer of desalinated water globally.

Mohammad Abunayyan_Rabigh 4 IWP Project EPC works
Mohammad Abunayyan
ACWA Power

“We are proud to be the world’s largest private company in desalinated water development and production, with the lowest levels of water cost, the largest plant, and the most innovative solutions. We are pleased with the continuous progress on the project, which further expands our presence in the key Rabigh region, which supplies water to the two Holy Cities. In the last month, during a record-breaking Hajj season, we have reliably supplied from our plants over two-thirds of the water demand in the holy sites, and I am thankful to all our colleagues who have spent time away from their families so that 2.5 million worshippers could safely perform their pilgrimage.” 

“Our presence in water desalination has already led key suppliers to localize their production in Saudi Arabia, and this project will create new employment opportunities during construction, as well as in operation and maintenance, where they will be largely staffed by young local talents from the local Electricity and Water Academy that we have developed over the last decade,” Mr. Abunayyan added.

SEPCOIII’s Chairman, Mr. ZHAO Qiming quoted that “The announcement marks yet another milestone in our ongoing partnership with ACWA Power and underpins our joint commitment to advancing sustainable water solutions in the Kingdom.”

The Water Purchase Agreement (WPA) of the project was signed earlier this year by the Saudi Water Partnership Company (SWPC) after a consortium of ACWA Power, HAACO, and AMCG emerged as the preferred bidder.

ACWA Power now operates 16 desalination plants in four countries, ten of which are in Saudi Arabia. The company fulfills 30 percent of the Kingdom’s water demand. In 2022 alone, the company added 2.4 million m3/day of water desalination capacity via four desalination plants in Saudi Arabia, Bahrain, and the UAE the highest in its history.

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