The 1,200MW plant will be built next to the existing Shuaiba power plant, 100 kilometres south of Jeddah, bringing its total capacity of the site to 5,600MW.

Under the deal, Alstom will design, supply, install and commission the plant. The company’s consortium partner Saudi Archirodon will carry out the civil works on the project.

The contract marks the third phase of the Shuaiba plant. Alstom built the previous 4,400MW of capacity at the site on the basis of two turnkey contracts awarded in November 1998 and January 2004 (MEED 02:05:03).

Demand for power is growing at a rate of 7 per cent a year in Saudi Arabia.