Bidders wait for update on Fadhili IPP

11 January 2016

Contract for power and steam plant was due to have been awarded in December

The bidders for the Fadhili cogeneration independent power project (IPP) in Saudi Arabia are still awaiting information from the client on the ranking of bidders and when a preferred bidder is due to be selected.

The project owner, a joint venture of Saudi Aramco and Saudi Electricity Company (SEC), had set a target of appointing the successful bidder in December, with the signing of electricity and steam offtake agreements scheduled for 15 January. The state-owned firms had intended to reach financial close for the scheme in March.

However, as of 11 January, the four bidders had not received any notification as to the ranking of bidders and when the contract will be awarded.

MEED reported in August that four out of nine prequalified groups were expected to bid for the scheme.

The groups that submitted bids on 1 November were:

The cogeneration project is scheduled to be developed on a 20-year power, water and steam purchase agreement (PWSPA), with Aramco the offtaker for the steam and water components and SEC the offtaker for the produced electricity.

The proposed IPP will have:

  •  Total power capacity of 1,200MW-1,600MW
  •  Total steam capacity of 3,190,000 pounds an hour
  •  Water production capacity of 768.8 tonnes an hour

Fadhili IPP deadlines

Production: The project owner has set a target of early steam production by 1 April 2018

Commissioning: The planned initial commissioning date is 27 June 2019

Commercial operation: The final commercial operation date is scheduled for 31 January 2020

The project has already fallen behind the original schedule, with the owner having initially planned to issue tender documents in mid-September 2014. Tender documents were issued to prequalified developers in April 2015. The delay is understood to have been due to design-change requests by the owner, according to sources in the kingdom’s power sector.

The project owner will create a project company to develop the IPP, with the client holding 50-60 per cent of equity ownership and the successful developer holding the remainder.

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