Metito has been awarded the design, supply, installation, and operation of El-Hamam agricultural waste treatment plant in joint venture with Hassan Allam, The Arab Contractors, and Orascom Construction.
The wastewater treatment plant has a capacity of 6 million m3/day, the largest of its type in the world and the treated water will irrigate up to 500,000 feddans west of the Nile Delta area. The plant will receive the wastewater gathered in the north of Delta from the agricultural drainage, through digging a 120 kilometers pathway connecting the two points.
This iconic national project is part of the state’s strategy to expand Egypt’s agricultural area, develop the West Delta region, and to create new sustainable communities and will have a myriad of positive economic and social impacts in Egypt and beyond.
Al Mahsamma agricultural drainage treatment, recycling, and reuse plant has been awarded the best water/wastewater project by Engineering News-Record (ENR) 8th annual Global Best Projects competition.
ENR Global Best Projects identifies and honors the project teams behind outstanding design and construction efforts of the past year and focuses on the challenges and risks associated.
Al Mahsamma plant was also named CFI global winner of the Best Recycling and Reuse Water Project for 2020, Construction Innovation Awards “Infrastructure Project of the Year” for 2019 and has been shortlisted for the Wastewater Project of the Year award at GWI’s Global Water Awards.
- The project value is $245m (SAR920m)
- Dammam ISTP project moves ahead
Kingdom Of Saudi Arabia, 1st June 2020: Saudi Water Partnership Company (SWPC) and the consortium led by the Metito Group and comprising the companies; “Metito”, “Mowah”, and “Orascom Construction” (the Consortium) today confirmed the successful financial closing of the Kingdom’s first independent sewage treatment plant (ISTP) to be awarded to the private sector under the Build Own Operate Transfer (BOOT) concession model with a tenor of 25 years, in Dammam West. The project is worth US$245M with the investment made up of a combination of equity and debt.
The financial close of this ‘first of its kind’ project comes in spite of the global Covid-19 pandemic, which has frozen many large-scale projects around the world. The Dammam ISTP has a designed capacity of 350,000 cubic meters per day and an initial capacity of 200,000 cubic meters per day and will serve the western region of Dammam.
Khaled AlQureshi, Chief Executive Officer Saudi Water Partnership Company, said: “Despite global volatility and liquidity issues, and ever-changing market conditions, SWPC and the Consortium were able to successfully reach financial closing, in close cooperation with the lenders group.”
“This is a testament of SWPC’s commitment to support and encourage private sector participation in sustainable development by providing lucrative opportunities for local and foreign investors to participate in the implementation of lifeline water projects. This will achieve sustainable development, provide job opportunities for young people, and support local output and balanced development, in line with the strategic goals of the Kingdom’s “Vision 2030” and the initiatives approved by the Saudi Council of Ministers to encourage private sector participation in economic development”, added AlQureshi.
The Consortium scope of work covers the entire investment and includes the EPC and O&M which will be executed by a wholly owned Saudi-based company established by the Consortium to serve the project – the Dammam West Company for Water.
The total project costs approx. $245m (SAR920m), with funding sourced from a combination of senior project finance loans in addition to equity contributions from shareholders. Non-recourse project financing is provided by a group of local and international banks, including The National Commercial Bank (NCB), Sumitomo Mitsui Banking Corporation Europe Limited (SMBC), and Arab Petroleum Investment Corporation (APICORP), worth a total of $160m (SAR601m).
“Reaching this stage in the project and resuming construction work under these difficult circumstances indicates confidence in the investment environment in the Kingdom of Saudi Arabia and its suitability for the private sector”, stressed AlQureshi.
On behalf of the Consortium, Rami Ghandour, Metito Managing Director, said: ‘While the world is navigating unprecedented and testing times due to the fast evolving COVID-19 pandemic, we are delighted to share a strategic milestone for the water and wastewater industry in MENASA region. Today marks the successful financial close of the Dammam ISTP, a pioneering project in the Kingdom and the region. The financial structure for this project is a testament to its importance, scale and impact, and the confidence of all stakeholders in its sustainable success.”
“We are confident that with the continued support from SWPC the Dammam ISTP will pave the way for similar developments in the future that can contribute to a more efficient water sector in the Kingdom and beyond,” Ghandour added.
The successful financial closing marks a significant achievement for the Saudi Government and the wider region, demonstrating sustained commitment to development in the water sector. Since breaking ground on the Dammam West site in February this year, work has continued without interruption and the project remains on track.
Project Sponsors International Legal Advisors: Covington & Burling LLP
Project Sponsors Local Legal Advisors: Hatem Abbas Ghazzawi & Co
Project Sponsors Financial Advisor: Synergy Consulting
Project Sponsors Insurance Advisor: Willis Towers Watson
Lenders International Legal Advisors: Allen & Overy LLP
Lenders Local Legal Advisors: Baker & McKenzie Habib Al Mulla
Lenders Insurance Advisor: INDECS Consulting Limited
LTA: ILF & Partners Engineering
Metito-Hassan Allam JV commissions Al Mahsamma plant, the largest of its kind in the world
- The 1 million cubic m3/day state-of-the-art mega national project will contribute to the cultivation of 70,000 acres in Sinai: Eng. Karim Madwar
- Al Mahsamma project is a milestone in Egypt’s water security agenda and represents a qualitative leap in the field of agricultural wastewater treatment across Africa: Eng. Hassan Allam
- Egypt is adopting a progressive policy towards achieving water security and is taking proactive steps, including recycling agricultural drainage and water desalination
Cairo, 22nd of April 2020 –– H.E President AbdelFattah El Sisi has officially inaugurated Al Mahsamma agricultural drainage treatment, recycling and reuse plant in Ismailia Governorate. The project has a capacity of 1 million cubic m3/day and is built over an area of 42,000 square meters. Al Mahsamma is considered the largest plant of its kind in the world.
The USD100 million has been developed by the JV comprised of Metito, the multinational global provider of intelligent water management and alternative energy solutions, and Hassan Allam Construction, Egypt’s leading engineering, construction and infrastructure company, under the supervision of the Armed Forces Engineering Authority. The JV scope of work for this flagship project includes the engineering, construction, operations (EC&O), commissioning and O&M for a period of five years.
Al Mahsama forms part of Egypt’s progressive and multi-pronged approach to ensuring the country’s water security through wastewater treatment, desalination, and the preservation of natural water resources. The plant’s daily capacity will contribute to the preservation of the natural ecology of the Al Temsah Lake, located west of the Suez Canal, which has been impacted by wastewater disposal.
Commenting on the official inauguration of Al Mahsamma plant, Eng. Karim Madwar, Metito Africa Managing Director, said; “Metito is honored to play its part in this world-class mega national project located in the highly strategic east of the Suez Canal area. This is in line with the Egyptian government’s progressive strategy pertaining to water security.
Madwar highlighted that the latest technologies were utilized in the project for the treatment of agricultural drainage water to produce suitable water for irrigation and land reclamation and per the highest quality standard and specs set by the Egyptian Government. He also confirmed Metito’s commitment to utilize state-of-the-art technology and systems across its projects and in the various stages of water treatment, coupled with the integration of advanced digital and information technology. The latter is to monitor the effectiveness of operations and to ensure the quality of water remains compliant with standard and client specifications. Madwar further explained that all Metito project sites are equipped with laboratories for on-site water analysis and quality testing round the clock by dedicated experts.
“We are extremely proud to have been selected to contribute to the development of a project of such strategic importance, which we were able to complete in a record ten months, amounting to 2.5 million man hours with no injuries or time lost, a testament to the state’s confidence in our capabilities,” said Hassan Allam, Chairman of Hassan Allam Construction. “Al Mahsama plant will contribute to combatting water scarcity and will have a resounding impact on Egypt’s water security agenda and transform the scope if wastewater treatment across Africa.” He added, “We are extending our efforts to provide the latest solutions that help solving the water poverty, one of the major regional and global concerns.”
The plant will contribute to the irrigation of 70,000 acres of land in the Sinai, as part of the government’s efforts to develop the region by creating sustainable urban communities and job opportunities in the area. The water is transferred to the plant from Ismailia irrigation drainage canal, located west of Suez Canal, through two individual pump stations crossing underneath the Suez Canal into Srabuim siphon, from which the water is further pumped through the plant’s pump station using 8 vertical turbine type pumps – six working pumps and two on standby – with each pumping at a speed of 7000m3/hr.
Al Mahsamma project was named “Infrastructure Project of the Year” at Dubai’s 2019 Construction Innovation Awards and has been shortlisted for the Wastewater Project of the Year award at the Global Water Awards, with results set to be announced at the Global Water Summit in Spain at a future date.
- Today marks the start of construction at the first Independent Sewage Treatment Plant Project in the Kingdom of Saudi Arabia in Dammam
- Key project documents including the finance documents have been executed
- Notice to Proceed has been issued allowing contractors to mobilise and commence construction activities at the Dammam West project site
Dammam, 12 February 2020 – Today marks the start of construction at the first Independent Sewage Treatment Plant Project (ISTP) in the Kingdom of Saudi Arabia in Dammam West. The Notice to Proceed (NTP) allowing the contractors to mobilise and start construction on site has been issued following the execution of relevant project and finance documents by the banking group and the consortium developing the project led by the Metito Group and comprising the companies; “Metito”, “Mowah”, and “Orascom Construction” (the Consortium).
The plant has a designed capacity of 350,000 cubic meters per day and an initial capacity of 200,000 cubic meters per day and will serve the western region of Dammam. The project is the first ISTP to be awarded by the Saudi Water Partnership Company to investors under a Build- Own- Operate-Transfer (BOOT) model and plays an integral part of the plan set by the Ministry to tender similar projects to the investors in different regions across the Kingdom. This is in line with the Kingdom’s “Vision 2030” and the wider initiatives approved by the Cabinet of Ministers to further encourage private sector participation in economic development initiatives.
Rami Ghandour, Metito Managing Director commented: “The Dammam ISTP is a true testament of the Kingdom’s progressive and visionary leadership and a great example of their support to further involving private sector in lifeline mega infrastructural projects. Together with the support from the Saudi Water Partnership Company and the National Water Company, we will develop a project in world-class quality using the most efficient solutions and advanced technology that will guarantee sustainable optimized operations and service excellence. We will develop a working model for other similar projects in the Kingdom and further afield”.
Sami Alrayes, Mowah Chairman and CEO said: “Today is a milestone for the Saudi PPP sewage programme with the start of construction works in the Dammam West ISTP. Contractors are commencing mobilization and conducting site preparation, surveying, clearing, levelling and fencing confirming the commitment of Dammam West Company for Water in speeding the start of construction works in one of the first projects under this program.”
Osama Bishai, Chief Executive Officer of Orascom Construction, commented, “We are pleased with the financing milestones achieved on this project, paving the way for the start of construction. Orascom Construction’s experience, especially in the water sector, will be key to facilitate the successful execution of Dammam West ISTP. We are excited to play an integral role in this program and look forward to continue collaborating with SWPC and National Water Company.”