Project will add 1,800MW to the Saudi Arabia grid
Saudi Electricity Company (SEC) has received 16 prequalification applications for a deal to develop an independent power plant (IPP) at Qurayyah, on the east coast of the Kingdom.
Firms were given until 18 June to file submissions. The deadline was informally moved to 20 June so that submissions could be accepted over the weekend, sources say.
SEC invited expressions of interest in May, setting a deadline of 31 May. A total of 39 companies responded at this stage.
SEC will now evaluate the request for qualification submissions before compiling a list of prequalified companies. A request for proposals (RFP) will be issued in July or August.
The winning bidder will build, own and operate the steam power plant, which will be fuelled by heavy fuel oil and will have a capacity of around 1,800MW.
The IPP will be built at next to SEC’s existing facility at the Qurayyah site. It will be the third project to be developed under SEC’s IPP programme.
A project company will be formed by SEC and the successful developer or developer consortium. It will sell its entire capacity and output to SEC under a power purchase agreement (PPA). Under the PPA, SEC will also supply heavy fuel oil and allocate the land for the project.
The US’ Citigroup is financial adviser to the state-owned company in the tender while the law office of Mohammad bin Saud al-Rasheed in association with Baker Botts is legal consultant. Germany’s Fichtner is technical consultant.
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