Saudi Electricity Company (SEC) will invite expressions of interest to develop its second independent power project (IPP) before November, ahead of the delayed bids for its first IPP at Rabigh.
PP11 will be built in Riyadh and will have a capacity of 2,000MW. It is the only gas-fired IPP on the Saudi market. It is expected that a tender for the project could be issued by early 2009. The cost of the Riyadh plant is SR8bn ($2.1bn).
Meanwhile, SEC has delayed the deadline for proposals for its planned 1,200MW Rabigh heavy fuel oil-fired IPP by two months. The deadline for bids is now 1 November rather than 31 August as originally planned.
According to one source close to the project, the delay has been caused by difficulties in securing engineering, procurement and construction contractors.
With bids for the Ras al-Zour independent water and power project (IWPP) being developed by the Water & Electricity Company (WEC) recently submitted, developers will have four months to concentrate on the Rabigh bid (MEED 30:6:08).
SEC has selected 23 prequalifiers for the Rabigh plant. The companies are divided into two groups.
In the first, 10 firms will be able to bid individually, while the 13 members of the second group will have to form consortiums with their peers in the first cluster if they are to bid.
A further IWPP at Yanbu, being tendered by the Power & Water Utility Company for Jubail & Yanbu, has also been delayed to 15 December from 27 August.
The Yanbu plant will have a capacity of 1,700MW and 33 million gallons a day of water.
The revised deadlines should ease pressure on major contractors in the kingdom that faced having to bid for three projects in a short space of time.
Citi is the financial adviser on both the Rabigh and Riyadh IPPs. US-based Baker Botts is the legal consultant and Germany’s Ficht-ner is the technical consultant on the two projects.
SEC is planning a third IPP in the kingdom at Qurayah. At a cost of SR8bn, the plant will have a capacity of 2,000MW and will use Heavy Arabian crude as feedstock.
Selected firms - Group one
Korean Electric Power Corporation
Suez Energy International
Abu Dhabi National Energy Company (Taqa) with National Power Company
Selected firms - Group two
Acwa Power Projects
AEI/Future Water & Power
General Mediterranean Holding with Khanjee Holding
Gulf Investment Corporation
Hongkong Electric International
Mubadala Development Company
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