Citigroup advises Riyadh on independent power projects

28 September 2007
Riyadh has selected consultants to advise on three new independent power projects (IPPs) in the kingdom, which will require a total investment of SR 21,000 million ($5,619 million).
Riyadh has selected consultants to advise on three new independent power projects (IPPs) in the kingdom, which will require a total investment of SR 21,000 million ($5,619 million).

The new plants should add 5,200 MW to the domestic grid by 2015.

State-run Saudi Electricity Company (SEC) has appointed Citigroup as financial adviser and Germany's Fichtner as the technical consultant. Baker Botts with the local Mohamed Bin Saud Al-Rasheed is the legal adviser.

SEC will initially focus on two IPPs, one at Rabigh, on the west coast, and the other in the capital. The oil-fired plant at Rabigh, 140 kilometres north of Jeddah, will have a capacity of 1,200 MW and the Riyadh plant, PP11, will be a gas-fired plant with a capacity of 2,000 MW. A third, 2,000-MW oil-fired plant is also planned for Al-Qurayyah in the Eastern Province.

Under the IPP programme, a series of project companies will be set up, with private developers taking a 60 per cent stake and SEC taking 10 per cent. The remaining 30 per cent will either be held by a third party or SEC, or the developer may be allowed to increase its stake in

the company.

The IPP project is part of a wider $51,000 million, 10-year programme by the government to meet rising power demand. This is set to increase by 134 per cent from 29.9 GW to 70 GW by 2024 (MEED 6:7:07).

A MEED Subscription...

Subscribe or upgrade your current MEED.com 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