Saudi Arabia has suspended the privatization plans for the Ras Al Khair desalination and power plant, valued at an estimated $2 billion, according to reports.
The plant had attracted interest from investors including France’s Engie SA, Bloomberg reports.
“This decision was made in order to capitalize on knowledge and capacity built in the Kingdom as a result of many years of experience in the areas of water desalination, new technologies, R&D (research and development) and supply chains,” said the Privatization Supervisory Committee for the Environment, Water and Agriculture sectors. “A new engagement strategy and plan for the Saline Water Conversion Corporation (SWCC) assets such as Ras Al Khair plant will be announced shortly,” it said in a statement on Monday on the website of the Saudi national centre for privatizations, according to Reuters.
The Ras Al Khair desalination and power facility on Saudi Arabia’s east coast had cost more than $7 billion to build, and the Kingdom was looking to raise about $2 billion by selling a 60% stake, two people familiar with the matter told Bloomberg.
Officials said will continue with other public-private partnerships.
