Jubail co-gen cancelled

29 October 2001

A co-generation plant planned for Jubail has been cancelled. Just one company bid for the contract to develop the plant by the early-August deadline after a bidding process that suffered from changes to the scope of works and consequent delays. Officials at the client body, the Royal Commission for Jubail & Yanbu (RCJ&Y), say they have no plans for another plant (MEED 17:8:01).

Four groups had been expected to bid for the contract, but only South Korea's Doosan Heavy Industries & Construction Companyeventually did. The other contractors say they decided not to bid after RCJ&Y halved the scope of works due to budgetary constraints. The plant was originally to have the capacity to generate 160 MW and produce 100,000 gallons a day of water. The revised plans envisaged building the plant in two stages, with the second half to be built under the auspices of the newly created Power & Water Utilities Company for Jubail & Yanbu (Marafiq).

The project's cancellation raises questions over other new capacity additions planned for the industrial cities. A project to install a fifth turbine at Yanbu was also cancelled by RCJ&Y in March. Contractors say they expect no new power or water projects to be tendered for the cities until the gas initiative projects are under way.

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