Riyadh - Mubasher: A consortium including Alkhorayef Water and Power Technologies Company signed a contract valued at SAR 7.78 billion with Saudi Water Partnership Company on 13 September 2023.
The deal covers the build, operate, and transfer (BOT) independent water transmission pipeline (IWTP) Rayis – Rabigh project, according to a bourse filing.
The joint project is the first of its kind to be developed on a build-operate-transfer (BOT) model in Saudi Arabia. It will have a transmission capacity of 500,000 cubic meters per day (m3/day) and a length of 150 kilometres (km) to provide Makkah and Madinah regions with drinking water.
The construction will take place in 30 months, while the commercial operation will begin during the second quarter (Q2) of 2026 for 35 years.
Alkhorayef Water highlighted that it owns 50% of the consortium, adding that the project will reflect on its income statements in Q4-23.
The Tadawul-listed firm will disclose any further developments regarding the joint venture in due course.
Last July, board members of Alkhorayef Water proposed a 40% capital raise to SAR 350 million from SAR 250 million in order to expand the company’s activities across the Kingdom.
