RIYADH: A huge desalination plant on the Red Sea coast is a step closer to being built afer a Chinese-Saudi consortium was awarded the construction contract for the SR2.54 billion ($677 million) project.

Saudi firm ACWA Power — the company leading the plant’s development — signed the deal with the group which includes Beijing-based Power China, Qingdao-headquarted SEPCOIII, and Riyadh-located Wetico, at a special ceremony in the Kingdom.

The Rabigh 4 Independent Water Plant is set to be built in Saudi Arabia’s Western province, and will mainly serve the Makkah and Madinah regions.

Once finished, it will double ACWA Power’s desalination capacity in the area to 1.2 million cubic meters per day, as the firm already operates the Rabigh 3 IWP in the same area.

Speaking at the signing ceremony in Riyadh, SEPCOIII Chairman Zhao Qiming said: “The announcement marks yet another milestone in our ongoing partnership with ACWA Power and underpins our joint commitment to advancing sustainable water solutions in the Kingdom.”

Also at the ceremony, ACWA Power Chairman Mohammad Abunayyan said he was pleased with the “continuous progress” on the project, adding: “Our presence in water desalination has already led key suppliers to localise their production in Saudi Arabia, and this project will create new employment opportunities during construction, as well as in operation and maintenance, where they will be largely staffed by young local talents from the local Electricity and Water Academy that we have developed over the last decade.”

ACWA Power now operates 16 desalination plants in four countries, 10 of which are in Saudi Arabia, meaing the company now fulfils 30 percent of the Kingdom’s water demand. 

The deal also marks the latest stage in the growing relationship between the company and Chinese firms.

In December 2022, amid the visit of Chinese President Xi Jinping to Saudi Arabia, the firm signed a host Memorandums of Understanding with companies from the Asian country.

These agreements covered financing, investment, engineering procurement and construction contracts, as well as renewable energy equipment procurement.

ACWA Power’s track record of collaboration with China started in 2009 when the firm opened an office in Beijing.