Top 10 Saudi megaprojects

The Kingdom's utilities market has major developments on the table

Jubail IWPP.
Jubail IWPP.

While some projects have found financing hard to come by, the Kingdom’s utilities market has an impressive array of developments on the table.

10 Shuqaiq II IWPP
Cost: Estimated at US $1.87 billion
Client: Water & Electricity Company (WEC)
Contractors: ACWA, Gulf Investment Council, Mitsubishi Corporation (EPC), First National Operation & Maintenance Co (O&M subcontractor)
Start date: December 2010
The Shuqaiq II project is the second of WEC’s IWPPs and will be located adjacent to the existing Shuqaiq I complex on Saudi Arabia’s Red Sea coast. On completion in December 2010, the plant is earmarked to have an overall capacity of 850MW and the ability to produce 212,000 cubic metres of desalinated water a day. The electricity and water produced at the Shuqaiq II plant will supply power to SEC’s southern grid, along with water to Abha, Jazan and some other southern cities.

9 Riyadh PP11
Cost: Around US $2 billion (estimated)
Client: Saudi Electricity Company (SEC)
Contractors: Bid deadline is December 7 2009
Start date: April 2013
Power Plant 11 (PP11) will add another 1,200MW to SEC’s already impressive complex of plants in April 2013. In total, the 11 sites will provide a total of 13,500MW. Fresh from the completion of the Rabigh IPP financing in July, the December close for bids for PP11 will provide an end-of-year bellwether on the health of the project financing sector in Saudi Arabia.

8 JEC captive power plant
Cost: US $2.5 billion
Client: MMC/Saudi BinLadin joint venture
Contractors: CPI Power Engineering (China)
Start date: 2013
China’s CPI Power Engineering was awarded the main construction contract for the 2,400MW Jizan Economic City (JEC) power plant in November 2008. Construction began this year and the site is expected to be operational in 2013. Altogether, this section of the JEC site consists of the main power plant, a desalination plant, associated balance-of-plant, electrical substation, and fuel storage facilities. The plan is for the power plant to be built with sufficient capacity to provide for the demands of the Economic City, while excess capacity can then be sold onto the national grid.

7 Rabigh IPP
Cost: US$2.5 billion
Client: Saudi Electricity Company (SEC)
Contractors: ACWA Power International, Korea Electric Power Corporate, Dongfang Electric/Sepco III (EPC)
Start date: 2012
In July this year, SEC confirmed that it had signed a BOO deal with a Korean consortium to build a 1,200MW oil-fired power plant in Rabigh. The consortium is led by Korea Electric Power Corporate and includes Saudi firm ACWA. The plant will be built in two phases, with 600MW coming online in 2012, and the remaining 600MW becoming available in 2013. Fichtner is the technical consultant on the project, while CitiGroup has been appointed the financial consultant.

6 Riyadh PP10
Cost: US $3 billion
Client: Saudi Electricity Company (SEC)
Contractors: Arabian Bemco Contracting, National Engineering Services of Pakistan (Nespak), GE (turbines), Almabani General Contractors (civil works)
Start date: Q2 2011
The Power Plant 10 (PP10) project is set to add another 2,000MW of power to Saudi Electricity Company (SEC)’s gigantic Riyadh site, which already has a total power output of 10,000MW. The plant is intended to increase power capacity in SEC’s Central Operating Area by 20%.
In June 2008, Arabian Bemco Contracting won the main contract to build the PP10 plant.
In December 2008, GE won a nearly US $1 billion contract to supply more than 30 Frame 7EA gas turbines for the project.

5 Shuaiba power plant, Stage 3
Cost: US $3 billion
Client: Saudi Electricity Company (SEC)
Contractors: Alstom and Saudi Archirodon
Start date: 2013
The new 1,200 MW steam power plant will be constructed adjacent to the existing plant, located on the Red Sea coast 100 km south of Jeddah. Upon completion of the project, the Shoaiba power station will comprise 14 units of 400 MW each, with a gross total output of 5,600MW. Under the terms of the contract, Alstom, as leader of the consortium, will design, supply, install and commission the entire plant, including oil-fired boilers, STF40 steam turbines, GIGATOP turbogenerators, sea-water flue gas desulphurisation and auxiliary equipment. The boilers are designed to burn both crude and heavy fuel oil and will use Alstom’s advanced low NOx tangential firing technology. Saudi Archirodon will carry out all the
associated civil and marine works.

4 Jubail IWPP
Cost: US $3.4 billion
Client: Marafiq
Contractors: Suez Energy International, Gulf Investment Corporation, ACWA
Start date: 2010
The power plant will comprise four blocks and will be based on Combined Cycle generation Gas Turbines where extraction steam from the turbines supplies process steam to the desalination plant. Marafiq says that this project is still on course for completion in in 2010. The IWPP will add 2,745MW of power and 800,000 cubic metres per day of desalinated water to Jubail Industrial City and the Eastern Province of Saudi Arabia.

3 Phase 6 Rabigh plant extension
Cost: Around US $4 billion
Client: Saudi Electricity Company (SEC)
Contractors: Bid deadline is October 31, 2009
Start date: 2014
Another project that has faced delays as a result of the difficult financing environment, SEC has extended the bid deadline for the 2,400MW Rabigh power plant extension by three months until October 31.
SEC cited the fall in the price of materials as the main reason for the delay, and has said that the estimated cost of the plant has now dropped by 20% to US $4 billion.
The Rabigh phase 6 expansion counts for around 12% of the extra 20,000MW SEC is planning to come online between now
and 2018, at a total cost of around $80 billion.
The Phase 6 tender was initially announced in May 2008, but only two bidders submitted proposals in time for the August 2008 deadline. SEC hopes that work will be complete in 2014.

2 Yanbu IWPP to EPC
Cost: Estimated at around US $4 billion
Client: Marafiq
Contractors: Project currently on hold
Start date: Unknown
The second of Marafiq’s bumper IWPP projects, in Yanbu Industrial City, was intended to eventually see the plant producing 1,700MW and 150,000 cubic metres a day of desalinated water. But in June, Marafiq opted to put the plans on hold and it seems likely that the IWPP will switch to an EPC contract.
Early indications seem to suggest that Marafiq will merge the plant with a second independent water and power plant that is planned by Saline Water Conversion Corporation (SWCC).

1 Ras Al Zour IWPP to EPC
Cost: Estimated at US $5.5 billion, although contract has not yet been awarded
Client: Water & Electricity Company to nominate agency - this has now been confirmed as SWCC.
Contractors: Taken under government control in April 2009
Start date: unknown
As a result of the economic crisis, and the pull-out of Malaysia’s Malakoff International from the preferred bidder consortium, the Saudi government stepped in to take control of the Ras Al Zour IWPP in April 2009. WEC’s original plan had been to make the integrated plant the largest of its type in the world, providing more than 1,000,000 cubic metres of desalinated water a day and capacity of 850-1,100MW. WEC has not yet indicated which government entity [this has been confirmed as SWCC] will now take control, but the ongoing determination to continue with the national utilities expansion programme seems to indicate that this project will be back on track shortly.


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