TAQA-led Consortium Achieves Financial Closure for Juranah ISWR Project

Abu Dhabi National Energy Company (TAQA), alongside Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), on Tuesday said that the consortium has achieved financial closure for Juranah Independent Strategic Water Reservoir Project (ISWR-1) in Makkah region in Saudi Arabia.

The Juranah ISWR-1 financial closing follows the signing of relevant project agreement by the consortium comprising TAQA, Vision Invest, and GIC with the Saudi Water Partnership Company (SWPC) on 31 December 2023.

The Juranah ISWR-1 Project is pivotal in addressing emergency municipal water demand across the Kingdom, specifically in Makkah and Madinah regions during the Hajj season.

The project cost, worth around $410 million, has been secured through approximately 82% debt funding from both local and international banks, including Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB) and Commercial Bank of Dubai (CBD), demonstrating strong confidence from financial partners in the consortium’s financial strength and the project’s strategic importance.

TAQA holds a 35% stake in the project company and a 50% shareholding in the operations and maintenance (O&M) company, led by TAQA itself.

With a total storage capacity of 2,000,000 cu m, being developed under a Build, Own, Operate and Transfer (BOOT) scheme, and an additional 500,000 cu m capacity operational tanks under a Design, Build, Transfer (DBT) model, the project aims to significantly enhance the potable water transmission and distribution system.

Omar Al Hashmi, Chief Executive Officer of Transmission & Distribution at TAQA, said that achieving financial closure for the Juranah ISWR-1 Project is a significant milestone for TAQA and its partners and this project underscores their 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 reflects their shared commitment to excellence and their unwavering focus on efficiency and reliably meeting the Saudi community needs. This project highlights GIC’s role in developing pioneering, commercially viable infrastructure projects that are essential for the growth of GCC economies.

Strategic Collaboration

According to the UAE’s major English daily Gulf News, Taqa’s transmission and distribution business saw strategic collaboration, reinforcing resilience and driving growth in 2023.

While TAQA continued to expand its reach and build new smart infrastructure across the UAE, the transmission and distribution business advanced a number of international partnerships and investments that will support its international business growth in the coming years.

The Juranah Independent Strategic Water Reservoir Project was the fourth transmission and distribution project being explored or pursued outside the UAE last year by TAQA, Gulf News added.