TAQA, Vision Invest and GIC Consortium Wins Juranah Water Reservoir Project in Makkah

A consortium of companies led by TAQA, Abu Dhabi National Energy Company, one of the largest listed integrated utilities in Europe, the Middle East and Africa, has been awarded the $410 million Juranah Independent Water Reservoir Project (ISWR-1) in the Makkah region in Saudi Arabia.

The consortium includes International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), which have signed the relevant project agreements with the procurer Saudi Water Partnership Company (SWPC) on 31 December 2023, TAQA said in a filing with Abu Dhabi Securities Exchange (ADX) on Tuesday.

The project is the first of its kind in Saudi Arabia, reflecting active private sector involvement in essential water infrastructure development in the Kingdom under a BOOT (Build, Own, Operate, Transfer) model.

TAQA will be the lead member for the operations and maintenance (O&M) activities through a specialised standalone O&M company, which will be co-owned by Vision Invest. The debt funding accounts for 80% of the total cost of the project with TAQA taking a 35% share and a 50% stake in the O&M company.

The MoU signing ceremony was held in the presence of Saudi Arabia’s Minister of Environment, Water, and Agriculture Abdulrahman Al-Fadley and other dignitaries.

As per the terms of the project, the consortium will be responsible to build, own, and operate 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 cubic meters. Additionally, operational tanks with a capacity of 500,000 cubic meters will be developed under a DBT (Design, Built, Transfer) model to support the potable water distribution system.

Commercial Operations in 2027

SWPC CEO Khalid Al-Quraishi said that the project the commercial operation of the project will begin in the second quarter of 2027 and the project will contribute to reducing levels of electrical energy consumption.

“It also includes solar energy units to reduce electricity consumption from the network and achieve the availability of stored water by 100%, in addition to decreasing operating costs and supporting local content by increasing the percentage of localization in business and human resources,” he added.

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said that this project aligns with TAQA’s commitment to sustainable development and innovation, and we look forward to delivering a robust and reliable water supply system for the community.

International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), has signed the relevant project agreements with the procurer Saudi Water Partnership Company (SWPC).

 Vision Invests President and CEO Oman Almidani said that their collaboration with TAQA and GIC in this transformative project to improve Makkah City’s water infrastructure is a source of immense pride and it is an honour to deliver this project for SWPC.

Meshary Al-Judaimi, Group Head – Principal Investment of GIC, said that GIC is a leading investor in the infrastructure projects and intends to continue to play a major role in utilities projects in the GCC.

“We are proud to co-develop this strategically important project in the Kingdom and winning the Juranah ISWR-1 project reinforces our role in supporting private sector participation in the development of the GCC economies,” Al-Judaimi added.