A new deadline for the conveyor is expected to be announced once a final bid submission date has been set for the Shouaiba IWPP by its client, Water & Electricity Company (WEC), which is a joint venture between SWCCand Saudi Electricity Company (SEC). Industry sources say the deadline extension for the conveyor scheme will also give more contractors and pipeline suppliers the opportunity to prequalify for the project (MEED 3:12:04).

So far, only four contractors are prequalified by SWCC to bid for the water transmission scheme, which will distribute water to different cities and locations in the western region. The prequalifiers are: the local Al-Rashid Trading & Contracting, Italy's Saipem, Turkey's Tekfenand the German office of Paris-based Technip. On the pipe supplier side, the local National Pipe Companyhas been prequalified by SWCC, while Group Fiveof South Africa and Al-Qahtani Pipe Coating Terminal are among the suppliers considering bidding for the project. Prequalified companies are expected to form consortia to bid either for one or up to all six packages (MEED 22:10:04).

Industry sources say the reluctance among contractors and suppliers to participate in the conveyor tender is also based on high steel prices - steel will make up 40-50 per cent of the project's cost - and the absence of an escalation clause. In addition, some contractors have been hesitant to participate due to SWCC's payment difficulties in the 1990s, an issue that has since been resolved according to SWCC governor Fehied al-Shareef (Saudi Arabia, MEED Special Report, 12:11:04, pages 44-45).

A site visit, originally scheduled for mid-December, will be organised once a bid deadline has been set.

Austria's ILF Consulting Engineersis the consultant on the conveyor scheme.