Miahona, MARAFIQ say Al-Haer ISTP achieves financial closure, costs SAR 1.5B

Al-Haer independent sewage treatment plant

Miahona Co. and Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) announced achieving the financial close for Al-Haer independent sewage treatment plant (ISTP) project in Riyadh at a total cost of SAR 1.5 billion, both companies said in separate statements to Tadawul.

The project duration is 25 years, and the expenses do not include the financing costs.

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Miahona’s stake in the project consortium is 45%.

The project received the closure certificates from the Saudi Water Partnership Co. and the financiers, both firms noted.

The facilities agreements were sealed on Feb. 7, after fulfilling all requirements and conditions with a group of financiers, namely, Banque Saudi Fransi (BSF), APICORP and Riyad Bank.

The project will be developed on a build, own, operate and transfer (BOOT) basis with a treatment capacity of 200,000 m3/day.

It includes treated sewage effluent special facilities (TSESF), consisting of a 32 km-long treated sewage effluent (TSE) transmission system with a capacity of 400,000 m³/day, a TSE pumping station, and TSE storage tanks with a capacity of 200,000 m³.

The project aims to support and maximize the utilization of treated sewage water in the Kingdom.

The relevant financial impact will appear as of the financial close – starting from Q1 2025.

Operations are expected to start in Dec. 2026. MARAFIQ received on July 16, 2024, an acceptance letter from Miahona approving its inclusion in the consortium with Miahona and N.V. BESIX S.A. Sharjah branch, for Al-Haer independent sewage treatment plant (ISTP) project in Riyadh.