HSBChas been selected for the financial advisory mandate, beating off competition from two other shortlisted contenders, Gulf Investment Corporationand a team of Societe Generalewith Arab Banking Corporation. Three other bids tabled for the financial advisory mandate last year came from Credit Suisse First Boston, Citibank with Saudi American Bankand ANZ Investment Bankwith Riyad Bank.

Germany's Fichtnerhas secured the technical advisory mandate. Other bidders included the US' Kuljian Corporation, Mott MacDonald, Black & VeatchConsultingand British Power International, all of the UK, and Switzerland's Electrowatt Engineering Services.

It is unclear whether a third advisory mandate, to provide legal services, has also been awarded. Six groups participated in the tender last year, including Clifford Chancewith The Law Firm of Yousef & Mohammed al-Jadaanand White & Casewith The Law Office of Hassan Mahassni.

The advisory mandates cover a total of four IWPPs to be located in Shouaiba and Shuqaiq on the Red Sea coast, and in Ras al-Zour and Jubail on the Gulf coast. Bidders were asked to price a base offer for only the Red Sea projects and an alternative comprising all four plants. Each of the Shouaiba, Ras al-Zour and Jubail projects will have power generation capacity of 2,000 MW, while the Shuqaiq plant will produce 700 MW of power. The three larger projects were originally planned as part of the kingdom's gas initiative. It is understood that the IWPPs will be tendered in two batches.

SEC and SWCC have set up a 50:50 joint venture company to carry out the IWPPs in partnership with a developer. The project company will then sell both the power and water to an offtaker, also owned by SWCC and SEC. The government has offered guarantees for the purchase of both products.