'We are considering the power to be in the range of 1,500-2,000 MW and [the desalination plant to have] capacity of 150,000-600,000 cubic metres of water a day,' says Thamer al-Sharhan, chief executive officer of Marafiq.

The project scope will be finalised by mid-August.

The Yanbu IWPP will be an oil-fired plant. Marafiq expects to receive its fuel allocation for the project from the Petroleum & Mineral Resources Ministry imminently.

A request for proposals for the scheme is due to be completed by October.

Marafiq has appointed an advisory team led by HSBC, which includes Allen & Overy and Germany's Lahmeyer International.

It is likely to launch further IWPP schemes in the future. 'We have to meet rising demand for power and water in the kingdom up to 2015,' says Al-Sharhan.

According to Saudi Elec-tricity Company, demand for power is expected to increase by 134 per cent to 70 GW by 2024, in line with spiralling population growth. Financing on Marafiq's first IWPP in Jubail, the world's largest power and desalination project, was completed on 20 June.

A consortium led by Belgium's Suez Energy International will build a 2,750-MW combined cycle power station and a 800,000-cubic-metre-a-day water desalination plant (MEED 21:6:07).