The shortlist includes most major developers active in the region, including the local Acwa Power Projects, the UK’s International Power, Japan’s Marubeni Corporation and Belgium’s Suez-Tractebel.

The multi-billion dollar scheme will involves the construction of a 1,500-1,700-MW, heavy oil-fired power plant and a 33-million-gallon-a-day desalination plant at Yanbu on the Red Sea, 350 kilometres north of Jeddah.

The scheme will be developed on a build-own-operate basis, with Marafiq holding 40 per cent and the remainder held by the successful private developer group (MEED 20:10:07).

The client is expected to issue the request for proposal documents soon, although it says it still has to fully evaluate the prequalification application from two other groups.

A team led by HSBC, which includes law firm Allen & Overy and German technical advisers Lahmeyer International, is working with Marafiq on the project.

Yanbu is the second independent water and power project to be developed by Marafiq. A power and water purchase agreement for the Jubail plant in the Eastern Province was signed with Belgium’s Suez Energy International in January.

Prequalifiers (local, unless stated)

1. Acwa Power Projects, with Korea Electric Power Corporation (Kepco)
2. International Power, UK, with Oasis International Power
3. Marubeni Corporation, Japan
4. Mitsubishi Corporation, Japan
5. Mitsui & Company, Japan
6. Powertek Berhad, Malaysia
7. Sembcorp Utilities, Singapore
8. Suez-Tractebel, Belgium
9. Sumitomo Corporation, Japan
10. Tenaga Nasional Berhad, Malaysia
11. Union Fenosa, Spain