Bidders line up for Aramco IPPs

21 March 2003
At least three international groups of developers are preparing to submit proposals by the 30 April deadline for the four independent power projects (IPPs) planned by Saudi Aramco. The IPP programme calls for the installation of about 800 MW of generating capacity at four separate Aramco sites (MEED 24:1:03).

The prospective bidders include a group made up of the UK's International Powerwith the local Saudi Ogerand Japan's Mitsui & Company; Japan's Mitsubishi Corporationwith Korea Electric Power Company (Kepco); and the local Al-Zamil Groupwith France's Air Liquide. About nine groups are prequalified to submit proposals.

The programme calls for the construction on a build-own-transfer (BOT) basis of:

140-190-MW plant at Ras Tanura with capability to produce 600,000-900,000 pounds an hour of steam;

190-240-MW station at Juaymah to produce 1 million-1.2 million pounds an hour of steam;

170-220-MW plant at Uthmaniyah to produce 1 million-1.2 million pounds an hour of steam;

170-220-MW station at Shedgum to produce 1 million-1.2 million pounds an hour of steam.

Aramco is looking to award the four IPPs under one contract and will sign a 20-year energy conversion agreement (ECA) with the successful bidder. The state-owned company is not looking at present to take a stake in the IPPs, meaning that the selected developer group will be granted a 100 per cent stake.

Three international companies are advising Aramco on the project: Germany's Fichtneris the technical adviser, BNP Paribasis the financial adviser and White & Caseis the legal adviser.

A MEED Subscription...

Subscribe or upgrade your current 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.

Get Notifications