A consortium of Spain’s Initec Energia and the local Saudi Services for Electro Mechanical Works (SSEM) has submitted a low bid for the contract to convert the PP9 power plant in Saudi Arabia to combined-cycle.

The Initec Energia/SSEM partnership submitted a total lump sum bid of SR1.2bn ($320m) to convert the plant in Riyadh to combined-cycle, which will increase its capacity by about 240MW. Saudi Electricity Company (SEC) received prices on 31 March from four bidders for the engineering, procurement and construction (EPC) contract.

The group’s bid was about 22 per cent lower than the SR1.55bn price submitted by the local Alfanar Construction, the second-lowest bidder. The local National Contracting Company (NCC) submitted the third-lowest price of SR1.58bn, which was followed by a SR1.74bn bid from the US’ Black & Veatch.

The PP9 scheme was constructed as a 1,200MW power plant between 1995 and 2003, and, following a couple of expansions, the capacity reached 3,500MW by 2009.

As part of its proposed projects for 2015, state utility SEC is also planning to convert the existing Tihama and Wade al-Dawasir power plants to combined-cycle.

In addition, SEC is pushing ahead with plans to build two major integrated solar combined-cycle (ISCC) projects in 2015. The utility has invited contractors to submit bids for the 1,050MW Waad al-Shamal power plant and the 550MW Duba 1 generation facility in early April.

The power projects are part of the kingdom’s efforts to boost generating capacity in the coming years to cope with the expected rise in demand.