A consortium led by Alkhorayef Water and Power Technologies has achieved financial close on the Rayis–Rabigh independent water transmission pipeline (IWTP) project, it said in a disclosure to Tadawul yesterday. The project is the first of its kind in the Kingdom to be developed on a build-operate-transfer basis.

What we know: The consortium, which includes Spanish infrastructure company Cobra, will spend SAR 2.4 bn to build the infrastructure. The 35-year contract is worth SAR 8.4 bn; Alkhorayef Water holds a 50% stake in the consortium.

The specifics: The 150 km pipeline will provide drinking water to Makkah and Madinah. Construction is set to last 30 months and the pipeline should be operational by 2Q 2026.

A bidding war: The project was awarded in September last year after a bidding war between 31 companies, including 14 local firms. Some of the bidders included Abu Dhabi’s Taqa as well as Nesma and Ajlan & Bros.

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