Chinese contractor wins Saudi power deal

27 September 2015

Firm will build main power island for Riyadh power plant

  • China’s Sepco 3 wins contract to build main power island component of PP14 power plant in Riyadh
  • MEED reported in May that Sepco 3 had submitted the lowest price for the power project
  • Contract has been procured using engineering, procurement and construction management model

Chinese contractor Sepco 3 has been awarded a contract to build the 1,755MW PP14 power plant in Riyadh.

MEED reported in May that Sepco 3 had submitted a low bid of SR1.1bn ($299.5m) for the deal. The firm has now signed the contract with state utility Saudi Electricity Company (SEC) to build the main power island for the PP14 facility.

The PP14 project has been tendered using an engineering, procurement and construction management (EPCM) model, as part of SEC’s recent strategy of experimenting with a variety of engineering, procurement and construction (EPC) models to procure and deliver major power generation facilities.

Under the EPCM model, SEC has split the project into multiple construction packages and has appointed a project engineer to manage the schemes.

Australia’s WorleyParsons managed the tendering process for the PP14 plant. In April 2013, the engineering consultancy was awarded the estimated $125m EPCM contract for the PP14 and PP13 projects. WorleyParsons will provide conceptual engineering, detailed design, material procurement, project and construction management, and commissioning management services.

In November 2013, the US’ GE was awarded a $700m contract from SEC to supply turbines and generators for the two power plants.

GE will provide 12 combined-cycle gas turbines, four steam turbines and 16 generators for the PP13 and PP14 facilities. PP13 will be located next to SEC’s PP11 and PP12 plants at Dhurma, near Riyadh, and PP14 will be located next to PP10.

GE’s deal also includes two contractual service agreements, one for each site, which cover maintenance of the units for a fixed eight-year period.

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