Natixis is involved* in the construction of the Shuaibah desalination plant to be located south of Jeddah and serving in the Makkah Mukarramah region (Kingdom of Saudi Arabia), where 99% of the water resources are backed by this water treatment process.
The Project is developed by ACWA Power on a Build, Own and Operate basis, for a total cost of US$ 315m. We especially fully arranged the US$ 100m Fixed Rate Tranche, and placed it with Samsung Life Insurance and KB Insurance, our Korean investor partners.
The transaction further illustrates the success of our O2D** model and that of our infrastructure finance franchise in the Middle-East.
Today, 55% of Saudi Arabia's water demand is sustained with desalinated water, other sources being ground water (41%) and surface water (4%). In the Makkah Region, where the Shuaibah complex is located, desalinated water accounts for 99% of water resources. Based on compound annual growth rate, by 2019, water demand in the Makkah Region is expected to amount to 485m cbm for the whole year (vs 363m cbm in 2014). In comparison, the Makkah Region's water demand (with a buffer to cope with any peak demand or unplanned outages) amounts to 406m cbm. The 79m cbm shortage, equivalent to 55 MIGD mirrors the required capacity for SEPCO II plant.
* Fixed Rate Tranche Arranger, Mandated Lead Arranger and Hedge Provider
** O2D: Originate to Distrubute
Figures / source: Natixis