The RFP states that Shouaiba will have generating capacity of 650-900 MW and desalination of 194 million gallons a day (g/d). The successful bidder will take a 60 per cent stake in the new project company, which will build, own and operate the oil-fired station. The remaining 40 per cent will be split between the Public Investment Fund, with 32 per cent, and Saudi Electricity Company(SEC)
, with 8 per cent.
The project company will sign a 20-year power and water purchase agreement with the Water & Electricity Company (WEC)
, which has been set up by SEC and the Saline Water Conversion Corporation (SWCC). It will be given a monthly payment guarantee on the offtake agreement and a termination guarantee.
The key project agreements are due to be signed in mid-2005, with first power scheduled for 2007. Shouaiba is the first of four IWPPs planned by SEC and SWCC. Once closure has been achieved, the RFP is expected to be issued for the Shuqaiq IWPP.
The advisory team on Shouaiba comprises HSBC
(financial), Germany’s Fichtner
(technical), and Clifford Chance
with the local Law Firm of Yousef & Mohammed al-Jadaan
The Shouaiba RFP was issued a month after The Power & Water Utilities Company for Jubail & Yanbu (Marafiq) released tender documents for its Jubail IWPP, which will have capacity of 2,400 MW and 79 million g/d. The bid closing date is 16 October (MEED 25:6:04).