Local developer in line for independent power project contract
Saudi Electricity Company (SEC) selected the local Acwa Power as first-ranked bidder for the contract to build an independent power project (IPP) at Qurayyah.
Acwa Power submitted the lowest bid for the contract in March.Acwa has put together a banking group, including the local National Commercial Bank and Banque Saudi Fransi and the UK’s Standard Chartered and HSBC.
SEC received six bids to develop the Qurayyah IPP after a seventh prequalified bidder, the US’ AES Corporation, pulled out of the process as a result of political unrest in the region.
The six bids opened on 27 March were:
- Acwa Power (Saudi Arabia) and Mena Infrastructure Fund with Samsung C&T (South Korea) as engineering, procurement and construction (EPC) contractor: 1,963MW at 7.417 hals/unit (1.97 US cents/unit)
- Marubeni Corporation (Japan) with Doosan (South Korea) and Hanwha (South Korea) as EPC contractor: 2,030MW at 8.56 hals/unit
- Sumitomo Corporation (Japan)/Korea Electric Power Corporation (South Korea)/Hyundai Engineering & Construction (South Korea): 1,940MW at 8.62 hals/unit
- GDF Suez (France)/International Power (UK)/Al-Jomaih (Saudi Arabia) with Hyundai Heavy Industries (South Korea) as EPC contractor using turbines from GE (US): 2,066MW at 8.75 hals/unit
- Powertek Berhad (Malaysia)/Saudi Oger (Saudi Arabia) with GS Engineering (South Korea)/Sepco 2 (China) as EPC contractor/JGC Corporation (Japan): 1,832MW at 9.25 hals/unit
- Tenaga Nasional Berhad (Malaysia)/Saudi Binladin (Saudi Arabia) with Iberdrola (Spain)/Arabian Bemco (Saudi Arabia) as EPC contractor: 2,063MW at 9.3 hals/unit
Once completed, the Qurayyah project will be a combined-cycle gas turbine (CCGT) power plant with a capacity of 1,800MW-2,100MW. Although originally launched as an oil-fired scheme, SEC changed the fuel source to gas in August 2010 and reissued the request for proposals to developers.
Construction of the plant and associated facilities is scheduled to begin no later than August 2011 and the commercial operation date is scheduled for June 2014. The IPP will be built next to SEC’s existing facility at the Qurayyah site.
The project will 50 per cent owned by SEC and 50 per cent by the developer. SEC will buy the entire plant’s output under a 20-year power purchase agreement (PPA). SEC will supply gas to the project company on an energy conversion basis. SEC will source the required gas under a separate arrangement with oil major Saudi Aramco.
The US’ Citigroup is financial adviser to SEC for the tender, while the law office of Mohammad bin Saud al-Rasheed, in association with Baker Botts, is legal consultant. Germany’s Fichtner is technical consultant.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.