Saudi utility major Aljomaih Energy and Water Company, in partnership with its consortium with Buhur Investment Company and Nesma Group, has announced the successful financial close of the Jubail–Buraydah Independent Water Transmission Pipeline Project, with a total investment value of SAR8.5 billion ($2.3 billion).
The achievement follows the signing of the Water Transmission Agreement between the project company, Stream Water Transmission Company, and the Saudi Water Partnership Company (SWPC).
The project ownership structure of the company is divided between Aljomaih holding at 45%, Buhur Investment Company holding at 35%, and Nesma Group holding at 20%.
This milestone represents a major step forward in developing the kingdom’s first independent water transmission project, linking the Eastern Province with the Qassim Region, with the added capability of reverse pumping, said the statement from Aljomaih.
The Jubail–Buraydah project will boast a 650,000 cu m of desalinated water per day capacity, supported by a storage capacity of 1,634,500 cu m, and will extend over a distance of 587km.
Developed under a Build, Own, Operate, and Transfer (BOOT) model, the project has a 35-year concession period with a 4-year construction phase. The operation commercial date is expected to commence in 2029.
On the financing, Aljomaih said it was secured through a consortium of leading local and regional lenders, including Al Rajhi Bank, National Infrastructure Fund (infra), Abu Dhabi Commercial Bank, Saudi Awwal Bank, The Arab Energy Fund, First Abu Dhabi Bank, The Saudi Investment Bank, and Bank AlJazira.
The financing structure will be based on a 100% Islamic financing making this unique for such large scale projects, it added.
Commenting on this achievement, Chairman Ibrahim Aljomaih said: "The financial close of this strategic project reaffirms our commitment to supporting the Kingdom’s National Water Strategy and Vision 2030 objectives. Through this partnership, which combines local expertise with global standards, we aim to achieve long-term water security and develop a resilient infrastructure that connects the Eastern and Qassim regions."
"The project’s advanced storage systems and unique design will ensure a continuous supply of desalinated water, strengthening Aljomaih Energy and Water’s position as a leader in developing water and infrastructure projects across the Kingdom," he stated.
Acting CEO Eng. Adnan Buhuligah said: "This financial close reflects the strength of our consortium and the trust our partners place in our vision. Through strategic collaboration and innovation, we are contributing to the development of high-quality water infrastructure projects in the Kingdom and building a more sustainable future. The project aims to achieve a local content contribution of no less than 45% during the construction phase and increase it to 70% during operations."
Mutlaq bin Damouk Al-Ghuwairi, Chairman of Buhur for Investment said: "It reflects our company’s commitment to actively contributing to major national and developmental projects. This project joins a portfolio of initiatives that Buhur is implementing in the water and energy sectors using the same model, in collaboration with local and international partners, with major investments, all of which are financed through Islamic instruments."
"The company takes pride in its qualified workforce and national leadership, who are driving and executing these projects, in a way that fulfills the objectives of local content and the goals of the Kingdom’s Vision 2030," he stated.
Faisal Alturki, the president of Nesma Group, said: "This achievement demonstrates what can be accomplished when national expertise unites behind a shared goal. Nesma is proud to contribute to a project that supports Saudi vision for sustainability, resilience, and long-term prosperity."
Once operational, the project will serve more than two million beneficiaries, providing a reliable and sustainable source of desalinated water with an availability rate of up to 98% of its operating capacity.