An award is imminent for the contract to build a new 6,000-tonne-a-day (t/d) cement plant at Arar near the Iraqi border. The client on the estimated SR 1,200 million ($320 million) project is Northern Region Cement Company (NRC), a recently-incorporated subsidiary of Saudi Pan Company For Trading, Industry & Contracting (Sapac).
Proposals from three groups of contractors are under evaluation. They are from China's Sinoma International; the local Nesma & Partners Contracting Company; and a German/Indian joint venture of KHD Humboldt Wedag and Larsen & Toubro (L&T). The two-year construction contract is likely to be awarded on a lump-sum turnkey basis with the successful contractor free to choose the required technology. The scheme will be equity financed. An initial public offering (IPO) in the NRC is likely to take place in 2007.Unlike much of the new capacity planned in the kingdom, the plant will be export-oriented, particularly towards Iraq. India's Holtec is the consultant (MEED 12:8:05).
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.