TAQA, GIC consortium secure funding for Makkah water project

TAQA Group, also known as Abu Dhabi National Energy Company, Gulf Investment Corporation (GIC) and Vision Invest have secured Dhs1.5bn in funding for the Juranah independent water reservoir project (ISWR-1) in Makkah, Saudi Arabia.

The Abu Dhabi utility firm owns a 35 per cent stake in the water project and an operations and maintenance (O&M) company, led by TAQA, itself holds a 50 per cent shareholding.

The project is funded (82 per cent) through debt financing from both local and international banks including Alinma Bank, Banque Saudi Fransi, Saudi Investment Bank and Commercial Bank of Dubai.

The Juranah ISWR-1 project is pivotal in addressing emergency municipal water demand in Makkah and Madinah regions, especially during the Hajj season.

The financial closing for the project follows the signing of the agreements between the three entities and the Saudi Water Partnership Company (SWPC) last December.

With a total storage capacity of 2,000,000 cubic metres and an additional 500,000 cubic metres of capacity operational tanks under a design, build and transfer model, the project aims to significantly enhance the potable water transmission and distribution system.

TAQA reported a Dhs9.5bn decrease in quarterly net income to $572m (Dhs2.1bn), down from Dhs11.6bn for the corresponding period a year ago due to “one-off items recognised in 2023.”

The utility firm said excluding “these one-offs”, its net income increased by Dhs0.1bn, up 6.9 per cent.

The group’s revenue in the three months ended March 31 jumped by 5.3 per cent to Dhs13.7bn, supported by the contribution from SWS Holding, which TAQA acquired in 2023 from Abu Dhabi Power Corporation – the utility firm’s majority shareholder.

The Abu Dhabi-listed firm confirmed in April that it is in talks with the three largest shareholders of Naturgy over a possible takeover of the Spanish energy firm. It plans to invest Dhs75bn by 2030 to achieve its ambitious expansion programme.

Read: TAQA Group posts Dhs2.1bn net income in Q1 2024