Saudi Arabia awards $1.43bn power plant contract

17 October 2011

The local Arabian Bemco selected to convert PP10 power plant to combined cycle technology

Saudi Electricity Company (SEC) has awarded a $1.43bn contract to the local Arabia Bemco to convert the PP10 simple cycle power plant in Riyadh to combined cycle technology, even though the project is still only in the final stages of completion.

The Riyadh power plant number 10 (PP10) will add 1,300MW capacity to the existing 3,400MW facility. The project will be completed on a build, own and operate (BOO) basis at the site located 80 kilometres west of Riyadh.

Arabian Bemco submitted the lowest price for the contract. The following companies also submitted bids (MEED 14:8:11):

  • Tecnicas Reunidas (Spain) – $1.484bn
  • Hyundai Heavy Industries (South Korea) – $1.485bn
  • Marubeni (Japan) and Hyundai Engineering & Construction (South Korea) – $1.648bn
  • Black & Veatch (US) and National Contracting Company (Saudi Arabia) – $1.998bn
  • Doosan Heavy Industries (South Korea) – $2.592bn

The expansion will comprise 10 steam turbine generators, 40 heat-recovery steam generators and 10 air-cooled condensers. When completed in 2015, PP10 will be the largest combined cycle plant in the world.

The original simple cycle gas-fired power plant was constructed by Arabian Bemco and is in the final stages of completion. In January 2011, SEC awarded the local contractor contracts to extend the PP10 and Qurayyah power plants in the kingdom (MEED 20:1:11).

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