ACWA Power, in partnership with Haji Abdullah Alireza & Partners Company and AlKifah Holding, has signed an agreement with the Saudi Water Partnership Company (SWPC) to develop and operate the Ras Mohaisen Independent Water Plant (IWP) project. The state-owned SWPC awarded the project under a Build-Own-Operate (BOO) model, attracting interest from 44 companies, including 21 Saudi firms, with 13 applicants qualifying for the bidding process.

The special purpose vehicle (SPV) for the project, Ras Mohaisen First Water Desalination, is owned 45% by ACWA Power, 35% by Haji Abdullah Alireza & Partners Company, and 20% by AlKifah Holding. This SPV has signed a 25-year water purchase agreement (WPA) with SWPC, according to a statement ACWA Power released to the Saudi stock exchange.

Located in the Al-Qunfudhah governorate, approximately 300 kilometers south of Makkah, the Ras Mohaisen desalination plant will have a total production capacity of 300,000 cubic meters per day (m³/day). The plant will use reverse osmosis technology and will include potable water storage tanks with a combined capacity of 600,000 m³ to ensure a reliable water supply. The project will be executed in two phases, with Phase 1 providing 100,000 m³/day and Phase 2 adding another 200,000 m³/day.

The initial operational phase is scheduled to begin in the first quarter of 2028, with full commercial operations expected by the first quarter of 2030. The project scope also includes the construction of substations, an overhead transmission line, and a 30-megawatt (MW) renewable energy power plant to support its operations.

ACWA Power has estimated the total project cost at 2.5 billion Saudi riyals ($666.54 million), while SWPC has cited a slightly higher estimate of SAR 2.6 billion ($693 million). The financial impact of the project’s contracted revenues is expected to materialize once the facilities are commercially operational.