Companies eye Shouaiba IWPP

08 September 2003
More details have emerged about the prospective bidders for the kingdom's first independent water and power project (IWPP) at Shouaiba for Saudi Electricity Company (SEC) and Saline Water Conversion Corporation (SWCC). Thirty-seven companies have received request for qualification (RFQ) documents on the project (MEED 22:8:03).

Industry sources say that of the 37 companies, 29 submitted expressions of interest by the original mid-August deadline, while a further eight have since indicated their interest in the project. Among the original applicants are International Power of the UK, the UAE-based AES Oasis Energy and Union Water & Electricity Company (UWEC), and Mitsui & Company, Mitsubishi Corporation and Sumitomo Corporation - all of Japan. Local firms interested in the project include Arabian Bemco Contracting, Saudi Oger and a consortium comprising Saudi Binladin Group, Xenel Industries, Al-Zahid and the Bushnak Group.

SWCC/SEC accepted the submission of late expressions of interest by a further eight unidentified companies. Companies have been given until 16 September to respond to the RFQ, although a two-week deadline extension is under consideration. It is expected that companies will form local/international consortia to bid for the project.

The Shouaiba project, the first of two IWPPs to be developed in the Western Province, will have capacity to produce 700 MW of power and 176 million gallons a day (g/d) of desalinated water. The second plant, which will be located in Shuqaiq, will produce 700 MW and 24 million g/d. Both plants will be oil-fired.

Phase 2 of the SEC/SWCC programme will cover two IWPPs in the Eastern Province. The Ras al-Zour IWPP will comprise a gas-fired plant with 2,500 MW of power and 176 million g/d of desalination capacity, while the Jubail IWPP will feature a 1,100-MW gas-fired power station with 25,000 g/d of desalination capacity. The projects are expected to go to tender in 2004.

Feedstock for all projects will be provided by Saudi Aramco. Germany's Fichtner is the technical consultant on the project, while HSBC is the financial adviser and Clifford Chance with the local Law Firm of Yousef & Mohammed al-Jadaan is the legal adviser.

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