Abu Dhabi National Energy Company (TAQA), in collaboration with Vision Invest and Gulf Investment Corporation (GIC), has achieved financial closure for the Juranah Independent Strategic Water Reservoir Project (ISWR-1) in Saudi Arabia’s Mecca region. This landmark project, valued at approximately 1.5 billion dirhams ($408 million), represents a significant step in addressing emergency municipal water demand during Hajj season.
1. Strategic Importance
The Juranah ISWR-1 Project aims to meet emergency municipal water demand across the Kingdom, particularly in Mecca and Madinah regions during Hajj. With a total storage capacity of 2 million cubic meters, it will significantly enhance the potable water transmission and distribution system.
2. Financing and Partnerships
- The project cost of around 1.5 billion dirhams was secured through approximately 82% debt funding from Saudi and international banks.
- Taqa holds a 35% stake in the project company and a 50% shareholding in the operations and maintenance (O&M) company.
3. Vision 2030 and Economic Transformation
- The project aligns with Saudi Arabia’s Vision 2030 plan, emphasizing privatization and self-sufficiency.
- It reflects the broader push to diversify the economy beyond oil and invest in critical infrastructure.
The Road Ahead
The successful financial closure of the Juranah ISWR-1 Project underscores the consortium’s commitment to strategic water management and sustainable development. As the project progresses, it will contribute significantly to the region’s water security and resilience.
