Local firm wins Saudi power deal

12 July 2015

Zamil group will provide steel for major power project

  • Local Zamil Structural Steel Company awarded $31.7m contract to supply major steel products
  • Power plant will be built on outskirts of Riyadh
  • Facility will have a capacity of 1,650MW

The local Zamil Structural Steel Company, a subsidiary of the Zamil Industrial Investment Company, has been awarded a SR118.8m ($31.7m) contract to supply steel products for the planned Power Plant 14 (PP14) project.

State utility Saudi Electricity Company (SEC) awarded the contract to Zamil on 9 July. Under the terms of the contract, the local firm will supply various structural steel products for use in the power generation, as well as the supply main and utility racks for the PP14 combined-cycle project, which is located on the outskirts of Riyadh.

In May, MEED reported that SEC was evaluating bids for the power island contracts on its planned PP13 and PP14 power plants.

For the power island mechanical, engineering and installation (ME&I) package, three contractors submitted bids for both plants and one bidder submitted a bid for solely PP14. Each plant is planned to have a capacity of 1,650MW.

Turkey’s Gama submitted the lowest price, SR2.4bn ($640m), for the power island contracts on both the PP13 and PP14 projects. This was 50 per cent lower than the SR4.8bn bid submitted by the local National Contracting Company (NCC), the second-lowest bidder.

The local Al-Rushaid group submitted a price of SR5.1bn for the ME&I package for both power plants. China’s Sepco submitted a bid of SR1.1bn for just the PP14 plant, which is regarded as the lowest price for the PP14 facility.

SEC has split the projects into a number of construction and engineering packages, which have been tendered separately.

Australia’s WorleyParsons is managing the tendering process. In April 2013, the Australian engineering consultant was awarded the estimated $125m engineering, procurement and construction management (EPCM) contract for the PP13 and PP14 projects. The firm will provide conceptual engineering, detailed design, material procurement, project and construction management, and commissioning management services.

In November 2013, the US’ GE was awarded a $700m contract from SEC to supply turbines and generators for the two power plants.

The local Assad Said has been awarded the civil construction package for PP13, and Saudi Archirodon has been awarded the construction package for PP14.

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