Banks end Powertek bid for Rabigh power plant

27 October 2008
A consortium of Malaysia’s Powertek Berhad and the local Xenel Industries is not expected to bid to develop the $2bn Rabigh independent power project in Saudi Arabia, according to bankers.

The consortium had been in talks with various international banks. However, these banks are understood to be supporting rival bids, or are not planning to get involved in the project during the current banking crisis.

One banking source who had considered offering support to the Powertek consortium says: “Powertek has fallen out of Rabigh because of the banking market. They were speaking to a few banks but in the current market everyone is careful about any commitments they make.”

Project sponsor the Saudi Electricity Company (SEC) recently increased the maximum number of Saudi banks that can support each bidder from two to three institutions (MEED 24:10:08).

This leaves three consortiums bidding for the project. Belgium's Suez Energy International with the UK's International Power and Saudi Oger, the local Acwa Power Projects with Korea Electric Power Corporation and Japan's Mitsubishi Corporation, and Japan's Marubeni Corporation with the local United Infrastructure Developers Company.

Another bidding team of the local National Power Company and Abu Dhabi National Energy Company (Taqa) also recently said it was no longer interested in bidding.

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