Abu Dhabi National Energy Company TAQA is Lead in Juranah Independent Strategic Water Reservoir Project
Posted on 01/03/2024
Gulf investors are keen on Saudi Arabia when it comes to infrastructure investing. Abu Dhabi National Energy Company PSJC (TAQA) is one of the largest listed integrated utilities in Europe, the Middle East and Africa. TAQA is part of an investor group that includes Vision International Investment Company (Vision Invest) and Gulf Investment Corporation G.S.C. (GIC) that will invest in the Juranah Independent Strategic Water Reservoir Project (ISWR-1) in the Makkah region, Saudi Arabia. The investors have signed the relevant project agreements with the procurer Saudi Water Partnership Company (SWPC). Al Muhaidib Group (AMG) and Abunayyan Holding are shareholders of Vision Invest.
The Juranah ISWR-1 Project is the first of its kind in the Kingdom of Saudi Arabia under a BOOT (Build, Own, Operate, Transfer) model, reflecting active private sector involvement in essential water infrastructure development. TAQA will be the lead member for the operations and maintenance (O&M) activities through a specialized standalone O&M company, which will be co-owned by Vision Invest. The total project cost is estimated at AED 1.5 billion, with debt funding expected to account for approximately 80%. TAQA is taking a 35% share in the project company and a 50% stake in the O&M company.
To mark the occasion, a signing ceremony was held in Riyadh on 31 December 2023 in the presence of the Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arabia, Abdulrahman Al-Fadley.
Under the terms of the project, the consortium will be responsible for building, owning, and operating the water reservoir infrastructure for 30 years before transferring the ownership to SWPC. The project’s primary objective is to respond to emergency municipal water demand for all the Kingdom’s regions and to peak demand in Makkah and Madinah during the Hajj season. The strategic tanks have a total storage capacity of 2,000,000 m3. Additionally, operational tanks with a capacity of 500,000 m3 will be developed under a DBT (Design, Built, Transfer) model to support the potable water distribution system.
This landmark project is a testament to the collaborative efforts of Vision Invest, Gulf Investment Corporation G.S.C, and TAQA. By integrating cutting-edge technology and sustainable practices, the consortium aims to ensure reliable and efficient water supply for the region.
TAQA
In December 2023, TAQA signed a memorandum of understanding (MoU) to explore the possibility of becoming one of the shareholders in a project to develop a 900 km high-voltage direct current (HVDC) electricity interconnector project between Greece and Cyprus. Prior to that, TAQA announced a strategic MoU for a feasibility study of an HVDC infrastructure project in Romania. Earlier in 2023, TAQA invested GBP 25 million (AED 113 million) into Xlinks First Limited which aims to lay the world’s longest HVDC subsea cables between the UK and Morocco to transport renewable power to the U.K.
ADNOC
On another note, ADNOC Distribution has announced the resignation of board member Mohamed Hassan Alsuwaidi. Alsuwaidi was appointed UAE Minister of Investment in July 2023. He also serves as CEO of Abu Dhabi Developmental Holding Company PJSC (ADQ) and TAQA. The Ministry of Investment was formed in July 2023to develop investment strategy in the country and was announced by UAE Prime Minister and Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum.