The Red Sea Development Company (TRSDC), an ambitious regenerative tourism project, has handed over the contract to design, build, operate and transfer utilities infrastructure, to a consortium led by ACWA Power
The Red Sea Project will be the first tourism destination in the region, powered solely by renewable energy.
The contract utilities to be delivered under the single agreement include, the provision of renewable power, potable water, wastewater treatment, solid waste management and district cooling for 16 hotels, international airport and infrastructure, as part of the phase one of The Red Sea Project.
Energy will be generated via solar panels and wind turbines, to meet an initial demand of 210MW, and the destination will enjoy the battery storage facility of 1GWh.
The agreement also includes the construction of three seawater reverse osmosis (SWRO) plants, a waste management centre and an innovative sewage treatment plant (STP) that allows waste to be utilised for enhancing the environment; and the creation of new wetland habitats as well as supplementing irrigation water for the TRSDC landscape nursery.
Saudi and international banks and Standard Chartered Bank has financed the ACWA Power consortium. The Red Sea Project has committed to purchase its utilities from the consortium for the next 25 years and The Public Investment Fund (PIF), which owns TRSDC, will provide the guarantee for the 25-year off take agreement.
John Pagano CEO of TRSDC, ?This is a pivotal moment for us as we seek to build a new kind of tourism destination. We?ve always been committed to doing things differently and investing heavily in renewables is helping us to set new global standards in regenerative tourism. This contract also signifies a noteworthy step change for us as the consortium brings foreign investment to the project for the first time, demonstrating international support and confidence for the vision that is becoming a reality along the Red Sea coast.?
Mohammad Abunayyan, ACWA Power chairman, said, ?The Red Sea Project is a vital undertaking under the Saudi Vision 2030 and aims to be a global showcase of the Kingdom?s ability to develop ambitious mega projects.?
?As the world seeks to satisfy the rising demand for affordable power and water, ACWA Power remains committed to being at the forefront of the energy transition and providing transformative solutions, including the early adoption of technologies such as distributed generation and smart grids, to deliver power and water reliably and responsibly. Powering the Red Sea Project and all utility services exclusively with clean, renewable energy sources is a commendable strategy, and enabling it through a public-private partnership contract underlines TRSDC?s groundbreaking approach which sets a new benchmark in sustainability and environmental stewardship,? he added.
The Red Sea Project has already surpassed significant milestones and the first guests are expected by the end of 2022, when the international airport and the first four hotels will open. The remaining 12 hotels scheduled for completion in Phase One, will open in 2023; delivering a total of 3,000 rooms across five islands and two inland resorts.
The project is expected to be completed by 2030; with 50 hotels, offering up to 8,000 hotel rooms, and around 1,300 residential properties, across 22 islands and six inland sites.
