MARAFIQ inks agreement with RCJY to lease assets at SAR 6.1 mln annually

MARAFIQ power plant in Yanbu

Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) signed on May 2 an agreement with the Royal Commission for Jubail and Yanbu (RCJY) to lease some assets in Jubail Industrial City at a total value of SAR 151.45 million.

The annual lease value of these assets, in case of full commercial operation, is expected to reach SAR 6.06 million through a period of 25 years, the utility said in a statement to Tadawul.

The lease contract was awarded based on the Cabinet decision dated July 12, 1999, which states that RCJY shall lease the basic equipment of services in Jubail and Yanbu industrial cities to MARAFIQ, provided that the Saudi utility provider will own these assets at the end of the lease term.

The lease agreement is valid for 25 years from the date, on which MARAFIQ gets delivery of each asset.

These assets will enable MARAFIQ to increase the reliability of its business towards all its customers and meet future demand for utility services.

The master lease agreement was concluded with RCJY on Oct. 11, 2006, when MARAFIQ received the basic equipment of services from RCJY when the company was under incorporation.