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ACWA Power to Develop $677 Mln Desalination Project in Saudi Arabia

Al-Fadley and Abunayyan during the signing. (Asharq Al-Awsat)
Al-Fadley and Abunayyan during the signing. (Asharq Al-Awsat)
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ACWA Power to Develop $677 Mln Desalination Project in Saudi Arabia

Al-Fadley and Abunayyan during the signing. (Asharq Al-Awsat)
Al-Fadley and Abunayyan during the signing. (Asharq Al-Awsat)

ACWA Power has signed water purchase agreements for the 600,000 cubic meter per day Rabigh 4 Independent Water Plant (IWP) in Saudi Arabia.

Valued at around SAR 2.54 billion ($677 million), the reverse osmosis plant will serve Makkah and Madinah regions, which typically see a spike in demand during Ramadan and the annual Hajj season.

The Saudi Water Partnership Company (SWPC) will be the sole buyer of services for the project, which is located on the Red Sea coast in Saudi Arabia.

The agreements were signed by Saudi Minister of Environment, Water and Agriculture Abdulrahman al-Fadley, and Chairman of ACWA Power Mohammad Abunayyan, in the presence of Marco Arcelli, Chief Executive Officer of ACWA Power, and Raad Al-Saady, Managing Director and Vice Chairman of ACWA Power.

In this regard, Al-Fadley said:“These agreements will achieve the goals for water production projects in partnership with the private sector that supplies industries, communities, and people across the Kingdom of Saudi Arabia.”

“We expect that Rabigh 4 will directly serve pilgrims from around the world in the holy cities of Makkah and Madinah and serve households in the wider region.

We hope that this project serves as a testament to this vital sector and shows how the private sector can improve the quality of services, realize investment efficiencies, and foster innovation—all of which are objectives of Vision 2030,” added the minister.

Eng. Khalid bin Zuwaid Al-Quraishi, Chief Executive Officer, SWPC, said: “Rabigh 4 has been designed to use less electricity, lower operating costs, and support local content across both supply chain and employment.” This plant will be operational in 2026, he noted.

ACWA Power currently operates Rabigh 3 IWP in the area with the same capacity as Rabigh 4.

“We are honored to partner with the SWPC and leverage our expertise as a market leader in water desalination," said Mohammad Abunayyan, Chairman of ACWA Power.

"Our commitment to developing efficient and reliable projects that meet the practical water needs of the community has played a significant role in our contribution towards Saudi Arabia's clean water strategy, including supplying nearly a third of the nation's water needs.”

With Rabigh 4 IWP, ACWA Power will double its desalination capacity in Rabigh Area. Financial close for the project is expected during the third quarter of 2023.

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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
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US Job Growth Surges in September, Unemployment Rate Falls to 4.1%

A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo
A woman enters a store next to a sign advertising job openings at Times Square in New York City, New York, US, August 6, 2021. REUTERS/Eduardo Munoz/File Photo

US job growth accelerated in September and the unemployment slipped to 4.1%, further reducing the need for the Federal Reserve to maintain large interest rate cuts at its remaining two meetings this year.
Nonfarm payrolls increased by 254,000 jobs last month after rising by an upwardly revised 159,000 in August, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday.
Economists polled by Reuters had forecast payrolls rising by 140,000 positions after advancing by a previously reported 142,000 in August.
The initial payrolls count for August has typically been revised higher over the past decade. Estimates for September's job gains ranged from 70,000 to 220,000.
The US labor market slowdown is being driven by tepid hiring against the backdrop of increased labor supply stemming mostly from a rise in immigration. Layoffs have remained low, which is underpinning the economy through solid consumer spending.
Average hourly earnings rose 0.4% after gaining 0.5% in August. Wages increased 4% year-on-year after climbing 3.9% in August.
The US unemployment rate dropped from 4.2% in August. It has jumped from 3.4% in April 2023, in part boosted by the 16-24 age cohort and rise in temporary layoffs during the annual automobile plant shutdowns in July.
The US Federal Reserve's policy setting committee kicked off its policy easing cycle with an unusually large half-percentage-point rate cut last month and Fed Chair Jerome Powell emphasized growing concerns over the health of the labor market.
While the labor market has taken a step back, annual benchmark revisions to national accounts data last week showed the economy in a much better shape than previously estimated, with upgrades to growth, income, savings and corporate profits.
This improved economic backdrop was acknowledged by Powell this week when he pushed back against investors' expectations for another half-percentage-point rate cut in November, saying “this is not a committee that feels like it is in a hurry to cut rates quickly.”
The Fed hiked rates by 525 basis points in 2022 and 2023, and delivered its first rate cut since 2020 last month. Its policy rate is currently set in the 4.75%-5.00% band.
Early on Friday, financial markets saw a roughly 71.5% chance of a quarter-point rate reduction in November, CME's FedWatch tool showed. The odds of a 50 basis points cut were around 28.5%.