ACWA Power signs SAR 2.5B water purchase agreement with SWPC

Logo of ACWA Power Co.

ACWA Power Co.’s 45%-owned subsidiary, Ras Mohaisen First Water Desalination Co., signed today, Feb. 5, a water purchase agreement (WPA) with the Saudi Water Partnership Co. (SWPC).

The agreement includes the development, construction, operation, and ownership of a water desalination plant, along with related infrastructure and facilities, including water storage tanks with a capacity of 600,000 cubic meters.

In a statement to Tadawul, ACWA Power said the contract is valued at SAR 2.5 billion and will run for 25 years from the start of the plant’s full commercial operation.

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The company expects the financial impact to appear upon the commencement of full commercial operations in Q1 2030.

The plant will adopt reverse osmosis technology with a production capacity of up to 300,000 cubic meters per day. It will be located in the western region of Saudi Arabia, approximately 300 km south of Makkah, on the Red Sea coast.

There are no related parties to the agreement, the statement added.