- Four groups submited bids for the IPP contract on 1 November
- Proposed IPP will have a total power capacity of between 1,200MW and 1,600MW
- Project is being developed as a joint venture between Saudi Electricity Company and Saudi Aramco
The joint venture of Saudi Aramco and Saudi Electricity Company (SEC) has received bids from four groups for the contract to develop the Fadhili cogeneration independent power project (IPP) in the Eastern Province of the kingdom.
MEED reported in August that the four, out of nine prequalified groups, were expected to bid for the project.
The four groups which submitted bids on 1 November are:
- Acwa Power (local)
- Engie (previously GDF Suez) (UK/France) / Doosan (South Korea)
- JGC (Japan) / TNB (Malaysia) / Samsung C&T (South Korea) / Samsung Engineering (South Korea)
- Mitsubishi (Japan) / Nebras Power (Qatar) / Chubu Electric Power Company (Japan) / CCTI (Taiwan)
The cogeneration project is scheduled to be developed on a 20-year power, water and steam purchase agreement (PWSPA), with Aramco the offtaker for the steam and water components and SEC the offtaker for the produced electricity.
Contract award: The Aramco/SEC joint venture is planning to appoint the successful bidder in December and sign the offtake agreements with the winning group by 15 January 2016. The state firms are targeting to reach financial close for the scheme in March 2016.
The proposed IPP will have:
- a total power capacity of between 1,200MW and 1,600MW, and
- total steam capacity of 3,190,000 pounds an hour (lb/h) and
- water production capacity of 768.8 tonnes an hour (t/h).
Production: The project owner has set a target of early steam production by 1 April 2018 and
Commissioning: a planned initial commissioning date of 27 June 2019
Commercial operation: The final commercial operation date is scheduled for 31 January 2020
Delays: The project has fallen behind the original schedule, with the owner having initially planned to issue tender documents in mid-September 2014. Tender documents were issued to prequalified developers in April 2015. The delay is understood to have been due to some design change requests by the owner, according to sources in the kingdoms power sector.
The project owner will create a project company to develop the IPP, with the client holding 50-60 per cent of equity ownership, and the successful developer holding the remainder.