ACWA Power Inks Deal with Chinese-Saudi Consortium For Desalination Plant Construction


A Chinese-Saudi consortium has been given the building contract for the SR2.54 billion ($677 million) project, bringing the construction of a massive desalination plant on the Red Sea coast one step closer. At a special ceremony in the Kingdom, the agreement was signed with the group, which also comprises Beijing-based Power China, Qingdao-based SEPCOIII, and Riyadh-based Wetico. Saudi firm ACWA Power is the company overseeing the development of the facility. 

The Makkah and Madinah districts would primarily benefit from the construction of the Rabigh 4 Independent Water Plant, which will be located in Saudi Arabia's Western Province. When completion, it will increase the region's desalination capacity of ACWA Power, which already runs the Rabigh 3 IWP, to 1.2 million cubic meters per day.

Speaking at the signing ceremony in Riyadh, SEPCOIII Chairman Zhao Qiming said: “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.”

Also at the ceremony, ACWA Power Chairman Mohammad Abunayyan said he was pleased with the “continuous progress” on the project, adding: “Our presence in water desalination has already led key suppliers to localise 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.”

With the operation of 16 desalination facilities across four nations, 10 of which are in Saudi Arabia, ACWA Power today meets 30% of the country's water needs. The transaction also represents the most recent development in the company's evolving partnership with Chinese businesses.

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