SWPC awards contract for Makkah water project to Abu Dhabi’s TAQA-led consortium

RIYADH: Hajj pilgrims will benefit from a boosted water supply after Abu Dhabi National Energy Co. signed a 1.5 billion dirhams ($410 million) deal with Saudi Water Partnership Co.

The contract aims to develop the Juranah ISWR-1 Project, an independent strategic water reserve initiative in Makkah. 

Saudi Water Partnership Co. awarded this deal to a consortium led by the UAE firm, also known as TAQA. 

This undertaking is the first of its kind in the Kingdom, which will function under a build, own, operate, and transfer model, according to a statement. 

The consortium, which also includes Saudi-based Vision International Investment Co. and Kuwait-based Gulf Investment Corp., will be responsible for the construction, holding, and operation of the water reservoir infrastructure for 30 years before transferring the ownership to SWPC. 

Khalid Al-Quraishi, CEO of SWPC, said: “The project is the first of its kind in Saudi Arabia with the participation of the private sector, which comes after the launch of the National Water Strategy. The project will operate under the ownership, operation, and asset transfer system.” 

He added that the commercial operations of this initiative will begin in the second quarter of 2027. 

According to Al-Quraishi, this undertaking is expected to contribute to reducing energy consumption levels, as it includes “solar energy units to reduce electricity consumption from the network and achieve the availability of stored water by 100 percent.” 

According to the press release: “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.”

Debt funding is expected to account for around 80 percent of the expenses, the statement added.

TAQA will be the lead member for the operations and maintenance activities through a specialized standalone operations and maintenance company, which will be co-owned by Vision Invest. 

The strategic tanks have a total storage capacity of 2 million cubic meters. Additionally, operational tanks with a capacity of 500,000 cubic meters will be developed under a design, build, and transfer model to support the potable water distribution system. 

“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,” said Jasim Husain Thabet, TAQA’s group CEO and managing director.