Five consortiums have bid for the development of the PP11 power plant in Riyadh. The consortium led by Japan’s Marubeni Corporation is offering the lowest tariff.

Saudi Electricity Company, the sponsor of the project, says it plans to sign a power purchase agreement with the winning bidder by 31 March 2010.

Marubeni’s group also includes Japan’s Kansai Electric Power Company and Saudi Masader Company for Power, Water & Gas. Together, they submitted a tariff of SR0.077 ($0.021) a kilowatt (kW), making them the low bidder on the project.

Belgium’s Suez Energy International with the local Al-Jomaih Group bid SR0.1079 a kW; Malaysia’s Tenaga Nasional Berhad with Japan’s Sumitomo Corporation and Saudi Binladin Group bid SR0.1126 a kW; and the local Acwa Power International, with Japan’s Mitsubishi Corporation and Tokyo Electric Power Company submitted a bid of SR0.1197.

The highest bidder was a group of the UK’s International Power with Saudi Oger and Korea Electric Power Corporation, which made an offer of SR0.1299.

The PP11 plant is due to start producing commercial electricity in 2012.