Saudi Electricity Company (SEC) has invited bids to build an independent power project (IPP) at Rabigh on a build-own-operate basis. The Rabigh 2 IPP will use heavy fuel oil (HFO) and have a power generating capacity of at least 1,700MW.

The following companies have been prequalified to bid for the contract:

• ACWA Power (Saudi Arabia)
• Adani Power (India)
• GD Power (China)
• General Electric (US)
• IP-GDF Suez (UK)
• Jindal Power (India)
• Korea Electric Power Corporation (South Korea)
• Marubeni Corporation (Japan)/UIDC (Saudi Arabia)
• Mitsui & Co (Japan)
• Sembcorp (Singapore)
• SK (South Korea)
• Sumitomo Corporation (Japan)
• TAQA (UAE)
• Tenaga Nasional Berhad (Malaysia)

The winning bidder will design, finance, construct, commission, test, own and maintain the IPP. The developer will take a 50 per cent stake in the project company. The remaining 50 per cent will be owned by SEC. Construction of the plant and associated facilities is scheduled to begin no later than 31 March 2013 with a projected commercial operation date of 1 April 2017.

The project company will sell its entire electricity output to SEC under a 25-year power purchase agreement. SEC will be responsible for dispatching power from the project. SEC will supply HFO to the project company, having sourced the fuel from Saudi Aramco under a separate agreement.

The IPP will use supercritical steam generators and is to be built at a site around 150 kilometres from Jeddah in Saudi Arabia’s Western province (MEED 11:4:12). Besides the power plant, the developer will also construct seawater intake and outfall structures, fuel facilities including storage and disposal facilities.

SEC has asked developers to submit letters of intention to bid by 13 June, ahead of a site visit on 26 June and a bidders’ conference on 27 June. Developers have until 6 October to respond to the request for proposals (RFP) and SEC will shortlist bidders by 9 January 2013. According to SEC’s schedule, the project is expected to reach financial close by 31 March 2013.

The US’ Citigroup is advising SEC on the project, which is the state-run power company’s fourth in its IPP programme. Once SEC has tendered contracts for the new IPP at Rabigh, it will tender another project, also with a capacity of 1,700MW, at Bi’r Ad Dibba on Saudi Arabia’s western coast between Jeddah and Jizan. The Bi’r Ad Dibba IPP will be tendered in 2013 to meet an operational date of 2018.