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Marafiq Signs $310 Million Contract with Veolia for Desal Plant

RIYADH, Saudi Arabia

Saudi Arabian water and electricity company Marafiq on July 21 signed a $310 million USD contract with French utility giant Veolia to design, build and operate a desalination plant in Jubail. The plant will use reverse osmosis and ultra-filtration technologies.

It will be located inside a petrochemical complex built by Saudi oil companies ARAMCO and Dow Chemicals.

The plant will produce 178,000 cubic meters per day. Veolia will operate it for 10 years, and will have the option to continue for an additional 20-year period, according to Marafiq officials. The multi-utility will receive $94 million USD under the contract.

The plant will start operations in June 2015. It will provide the petrochemical plant with water for its two cooling towers.

Marafiq is responsible for developing power and desalination solutions for Saudi Arabia’s industrial cities of Jubeil and Yanbu. It has completed an independent water and power project in Jubail that includes a 2,745-megawatt power plant and an 800,000-cubic-meter-per-day desalination plant.

Marafiq has also launched its Yanbu 2 power and water project, which includes a 690-megawatt power plant and a 60,000-cubic-meter-per-day desalination facility.

Meanwhile, on July 18 the Saudi Saline Water Conversion Corporation (SWCC) launched a number of desalination projects in Al Nammas governorate. The projects included 10 reservoirs for desalinated water to supply the cities of the north Assir region with additional drinking water, according to Khaled al Safi of the SWCC.

The SWCC has set a target of increasing desalinated water production by 2 million cubic meters by the end of this year. This will be accomplished through construction of the Ras al Kheir, Rabegh, Yanbu 3, and Jeddah 3 plants.

This will increase daily production from the current 5 million cubic meters to 7 million cubic meters by the end of this year, according to company officials.