TAQA is now in the consortium for the Juranah Independent Strategic Water Reservoir Project (ISWR-1) in the Makkah region in Saudi Arabia
The consortium, which also includes Vision International Investment Company (Vision Invest) and Gulf Investment Corporation (GIC), has signed the relevant project agreements with the procurer Saudi Water Partnership Company (SWPC).
The Juranah ISWR-1 Project is operating under a BOOT (Build, Own, Operate, Transfer) model, reflecting active private sector involvement in essential water infrastructure development. 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 total project cost is estimated at US$408mn (AED 1.5bn), with debt funding expected to account for approximately 80%. TAQA is taking a 35% share in the project company and a 50% stake in the O&M company.
A signing ceremony was held in Riyadh on 31 December 2023 in the presence of His Excellency the Minister of Environment, Water, and Agriculture of the Kingdom of Saudi Arabia, Abdulrahman Al-Fadley.
Under the terms of the project, the consortium will be responsible for building, owning, and operating 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 m3. Additionally, operational tanks with a capacity of 500,000 m3 will be developed under a DBT (Design, Built, Transfer) model to support the potable water distribution system.
Engineer Khalid Al-Quraishi, CEO of the Saudi Water Partnership Company, 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 (BOOT) system, and the commercial operation of the project will begin in the second quarter of 2027.”
“The project will contribute to reducing levels of electrical energy consumption, as the project 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 localisation in business and human resources.”
Jasim Husain Thabet, TAQA’s Group CEO and managing director, said, "We are honoured to be part of this pioneering consortium that will contribute significantly to developing the water infrastructure of Makkah City. 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."
“Our collaboration with TAQA and GIC in this transformative project to improve Makkah City's water infrastructure is a source of immense pride," said Omar Almidani, Vision Invest’s president and CEO. “It is an honour to deliver this project for the Saudi Water Partnership Company (SWPC), and together with our partners, we are dedicated to establishing a resilient and sustainable water storage system in Juranah. This reflects our shared commitment to excellence and our unwavering focus on efficiently and reliably meeting the community's needs."
Meshary Al-Judaimi, Group Head – Principal Investment of GIC, said, "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."
The Juranah Independent Strategic Water Reservoir Project is the fourth transmission and distribution project being explored or pursued outside the UAE. In December 2023, TAQA signed a memorandum of understanding to explore the possibility of becoming one of the shareholders in a project to develop a 900 km high-voltage direct current (HVDC) electricity interconnector project between Greece and Cyprus. Prior to that, TAQA announced a strategic MoU for a feasibility study of an HVDC infrastructure project in Romania.
