Saudi Electricity Company (SEC) has selected Saudi Arabia’s Arabian Bemco to build PP12 (power plant 12) near Riyadh City. The project will have a capacity of 2,175MW and the engineering, procurement and construction contract is worth SR4.7bn ($1.25bn).

Arabian Bemco submitted the lowest bid for the contract in March following a technical evaluation at the end of 2011. The company offered a price of SR2,371.83 ($632) per kW. Contractors were asked to submit offers for a project with a capacity of 1,745MW plus 25 per cent (1,745-2,181MW). Five other bids fell in close range:

• Hyundai Engineering & Construction (South Korea): SR2,419.48 a kW
• Tecnicas Reunidas (Spain): SR2,513.95 a kW
• Daelim (South Korea): SR2,520.99 a kW
• Hyundai Heavy Industries (South Korea): SR2,625.14 a kW
• National Contracting Company (Saudi Arabia) and Siemens (Germany): SR3,163.63 a kW

National Contracting Company submitted a bid, which proposed the use of turbines manufactured by Germany’s Siemens, while the other five bidders proposed using turbines from the US’ GE.

Arabian Bemco will build the PP12 project at a site located 100 kilometres west of Riyadh city and adjacent to the PP11 combined-cycle power plant, which is now under construction and will include the construction of a 380kV substation. It is to be completed by 2015.

PP11 is under construction at a nearby site. Unlike PP12, PP11 is being built as an independent power project (IPP) by UK-French company IP-GDF Suez with South Korea’s Hyundai Heavy Industries as EPC contractor. The facility will have a capacity of 1,729MW and is scheduled for completion in 2013.

Also in Riyadh, the PP10 project is being converted from simple cycle to combined-cycle technology. The project will add 1,300MW generating capacity and is being undertaken by Arabian Bemco.