Bemco in front for PP9 expansion

02 February 2006

The local Arabian Bemco Contracting is low bidder for the engineering, procurement and construction (EPC) contract to expand by 1,200-MW the PP9 power station in Riyadh following the opening of commercial offers on 23 January. The tender was put on hold last year after the client, Saudi Electricity Company (SEC), decided to change the project's scope due to revised operational requirements (MEED 23:12:05).

Bemco has offered a price of $688 million for the fast-track contract, which is due to be executed within 28 months. The other bidders are National Contracting Company (NCC) at $850 million followed by the US' General Electric at $872 million. Germany's Siemens, which was prequalified, did not submit a proposal. The project calls for the construction of blocks C and D alongside the existing facility. The plant will run on 20 heavy crude-fired GE frame 7 turbines. The plant's first 400 MW are due to be brought on line by mid-2006. The expansion will be the second in as many years at PP9. In May 2004, Bemco signed up for the SR 833 million ($222 million) contract to add 480 MW of generating capacity at block E, which was completed in less than eight months (MEED 14:5:04).

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