Environment minister signs SAR 1.6 bln bridge finance deal for desalination plants

Abdulrahman Mohsen Al-Fadhli, Saudi Minister of Environment, Water and Agriculture and also the chairman of Saline Water Conversion Corp (SWCC), signed a SAR 1.6 billion the first bridge finance deal with local banks, in coordination with National Debt Management Center (DMO).

The fund will be used to finance 2 projects that aim to improve asset utilization and increase the efficiency of the 2 desalination plants in Jubail (first phase) and Al Khobar (second phase), according to the ministry statement.

“The move aims to achieve financial balance through finding new financing options for water projects, in line with the privatization of the sector,” Al-Fadhli said.

He also noted that the fund will enable SWCC to speed up the execution of the 2 projects through introducing new technologies with a capital expenditure of SAR 3.6 billion.

“The new technologies are expected to enhance energy efficiency and reduce operating costs by up to SAR 1.25 billion,” Al-Fadhli added.