Saudi Arabia considers project finance for power plant

23 August 2016

3.8GW power plant could be switched to IPP

The Saudi Electricity Company (SEC) is considering using project finance to fund its 3780MW Taiba integrated solar combined cycle (ISCC) power plant, according to banking sources.

It is looking at various options for the generation project with bidders and a financial advisor.

The structures proposed include an engineering, procurement, construction (EPC) contract, a joint venture and an independent power project (IPP).

The submission date for bids has been extended on a number of occasions, and is currently in October 2016.

Taiba ISCC will consist of a combined-cycle capacity of 3,600MW as well as a 180MW solar component. It will be one of the largest generation facilities in Saudi Arabia, and will cost upwards of $3bn to build.

The plant will be located in Taiba in the western Medina region of the kingdom.

SEC has gone ahead with only one private power scheme since the 2013 Fadhili IPP, which is a joint project with Saudi Aramco. Duba ISCC, with a capacity of 550MW, was originally planned as an IPP, but awarded in 2015 as an EPC contract.

Waad al-Shamal ISCC was also awarded in late 2015 as an EPC contract. It will have a capacity of 1,390MW, of which 50MW concentrated solar power.

However, the 50MW solar photovoltaic plants at Al-Jouf and Rafha in the northern part of the kingdom are being tendered as IPPs. Developers submitted prequalification documents in early August.

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