Saudi Arabia evaluates bids for two power plants

11 May 2015

Both plants will have a capacity of 1,650MW

  • Turkish group submits lowest bid for power island contract on both plants
  • Projects have been tendered as a number of individual construction and equipment packages
  • Italian firm has been awarded the contract to provide heat recovery steam generators for both plants

The Saudi Electricity Company (SEC) is evaluating bids for the power island contracts on its planned PP13 and PP14 power plants.

For the power island mechanical engineering and installation (ME&I) package, three contractors submitted bids for both plants and one bidder submitted a bid for solely PP14. Each plant is planned to have a capacity of 1,650MW.

Turkey’s Gama submitted the lowest price, SR2.4bn ($640m), for the power island contracts on both the PP13 and PP14 projects. This was 50 per cent lower than the SR4.8bn bid submitted by the local National Contracting Company (NCC), the second lowest bidder.

The local Al-Rushaid group submitted a price of SR5.1bn for the ME&I package for both power plants.

China’s Sepco submitted a bid of SR1.1bn for just the PP14 plant, which is regarded as the lowest price for the PP14 facility.

SEC has split the projects into a number of construction and engineering packages, which have been tendered seperately.

Italy’s STF has been awarded the estimated $170m contract to supply the Heat Recovery Steam Generators for both the PP13 and PP14 combined-cycle power plants. STF saw off competition from seven other bidders to secure the deal.

Australia’s WorleyParsons is managing the tendering process. In April 2013, the Australian engineering consultant was awarded the estimated $125m engineering, procurement and construction management (EPCM) contract for the PP13 and PP14 projects. The firm will provide conceptual engineering, detailed design, material procurement, project and construction management, and commissioning management services.

In November 2013, the US’ GE was awarded a $700m contract from SEC to supply turbines and generators for the two power plants.

GE will provide 12 combined-cycle gas turbines, four steam turbines and 16 generators for the PP13 and PP14 facilities. PP13 will be located next to SEC’s PP11 and PP12 plants at Dhurma, near Riyadh, and PP14 will be located next to PP10. GE’s deal also includes two contractual service agreements, one for each site, which cover maintenance of the units for a fixed 8-year period.

The local Assad Said has been awarded the civil construction package for PP13, and Saudi Archirodon has been awarded the construction package for PP14.

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