Aljomaih Energy and Water Company, in partnership with Buhur Investment Company and Nesma Group, has announced the financial close of the Jubail–Buraydah Independent Water Transmission Pipeline Project, with a total investment value of approximately $2.2 billion (SAR 8.5 billion).
The achievement follows the signing of the Water Transmission Agreement between the project company, Stream Water Transmission Company, and the Saudi Water Partnership Company (SWPC).
The project ownership structure of the company is divided between Aljomaih Energy and Water Company holding at 45 percent, Buhur Investment Company holding at 35 percent, and Nesma Group holding at 20 percent.
This milestone represents a major step forward in developing the Kingdom’s first independent water transmission project, linking the Eastern Province with the Qassim Region, with the added capability of reverse pumping.
The financing was secured through a consortium of leading local and regional lenders, including Al Rajhi Bank, National Infrastructure Fund (infra), Abu Dhabi Commercial Bank, Saudi Awwal Bank, The Arab Energy Fund, First Abu Dhabi Bank, The Saudi Investment Bank, and Bank AlJazira.
This milestone represents a major step forward in developing the Kingdom’s 1st IWTP | Image Supplied
The financing structure will be based on 100 percent Islamic financing, making this unique for such large-scale projects. This reflects strong confidence in the project sponsors and the strategic significance of this vital initiative.
The Jubail–Buraydah project will transmit 650,000 cubic meters of desalinated water per day, supported by a storage capacity of 1,634,500 cubic meters, and will extend over a distance of 587 kilometers. Developed under a Build, Own, Operate, and Transfer (BOOT) model, the project has a 35-year concession period with a 4-year construction phase. The commercial operation date is expected to commence in 2029.
This project underscores Aljomaih Energy and Water Company’s commitment to building essential infrastructure that enhances water sustainability and supports the objectives of the National Water Strategy 2030. Once operational, the project will serve more than two million beneficiaries, providing a reliable and sustainable source of desalinated water with an availability rate of up to 98 percent of its operating capacity.
Ibrahim Aljomaih Chairman – Aljomaih Energy and Water Company
“The financial close of this strategic project reaffirms our commitment to supporting the Kingdom’s National Water Strategy and Vision 2030 objectives. Through this partnership, which combines local expertise with global standards, we aim to achieve long-term water security and develop a resilient infrastructure that connects the Eastern and Qassim regions. The project’s advanced storage systems and unique design will ensure a continuous supply of desalinated water, strengthening Aljomaih Energy and Water’s position as a leader in developing water and infrastructure projects across the Kingdom.”
Eng. Adnan Buhuligah, Acting CEO of Aljomaih Energy and Water Company, stated that, “This financial close reflects the strength of our consortium and the trust our partners place in our vision. Through strategic collaboration and innovation, we are contributing to the development of high-quality water infrastructure projects in the Kingdom and building a more sustainable future. The project aims to achieve a local content contribution of no less than 45 percent during the construction phase and increase it to 70 percent during operations.”
Mr. Mutlaq bin Damouk Al-Ghuwairi, Chairman of Buhur for Investment, commented that, “Buhur for Investment is proud to participate in this consortium alongside Al Jomaih Energy and Water and Nesma Group, working jointly with the Saudi Water Partnership Company (SWPC) to develop a project that embodies the success of the public-private partnership model. It reflects our company’s commitment to actively contributing to major national and developmental projects. This project joins a portfolio of initiatives that Buhur is implementing in the water and energy sectors using the same model, in collaboration with local and international partners, with major investments, all of which are financed through Islamic instruments.”
Faisal Alturki, the president of Nesma Group, remarked that, “This achievement demonstrates what can be accomplished when national expertise unites behind a shared goal. Nesma is proud to contribute to a project that supports Saudi vision for sustainability, resilience, and long-term prosperity.”
