Bemco wins $1.25bn Saudi Arabia power plant contract

20 May 2012

Local company to build 2,175MW power plant near Riyadh

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.

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