Saudi Electricity Company (SEC) is understood to be planning to name a preferred bidder for the $1.8bn Rabigh 2 independent power project by mid-January, according to sources close to the scheme.

The lowest bidders are a consortium of Abu Dhabi National Energy Company (Taqa) and Qatar Electricity and Water Company (QEWC); and the local Acwa Power. Both have been involved in clarification meetings with SEC in early December. SEC is understood to be targeting naming a preferred bidder on 9 January.

The third-lowest bidder, a consortium led by the UK/French IP-GDF Suez, have also had clarification discussions with SEC. Although the Taqa/QEWC bid is the cheapest tariff, there has been some debate in the market about how they managed to produce a bid that was 19 per cent lower than the second-ranked price.