EXCLUSIVE: Deadline nears for expressions of interest in major Saudi IWPP

29 April 2018
Planned cogeneration plant will be one of the largest utilities plants in the kingdom

The deadline is approaching for developers to submit expressions of interest for the planned Jubail 3 independent water and power project (IWPP) in Saudi Arabia.

Saudi Arabia’s Water & Electricity Company (WEC) has set a deadline of 1 May for developers to submit interest in the tender for the Jubail 3 project, which will have a power generation capacity of 3,000MW and a desalination capacity of 1.17 billion cubic metres a day (cm/d).

The desalination component of the plant will be a hybrid system, with 60 per cent of the capacity to be produced through reverse osmosis (RO) membrane technology, with the remaining 40 per cent to be produced through a thermal desalination process.

The project will be developed under a 25-year concession agreement, with the selected developer to sign a power and water purchase agreement (PWPA) with WEC, which will be the offtaker for all of the produced power and desalinated water. WEC’s obligations under the PWPA will be supported by a credit guarantee from the Saudi government.

The Jubail 3 plant will be developed 18km south of the Jubail Industrial City on the Arabian Gulf coast, and located adjacent to the existing Jubail phase 1 and 2 plants and Jubail RO plant.

The lead and financial adviser for the IWP is the local Banque Saudi Fransi. The client has appointed Germany’s Fichtner Engineering and Consulting as the technical adviser, the UK’s DLA Piper as legal adviser and the UK’s Alderbrook as co-financial adviser.

Riyadh is increasing the role of private investment in the power and desalination sectors as part of the kingdom’s Vision 2030. It is also preparing to privatise existing assets.

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