Saudi Arabia to launch independent power project tender in 2011

12 January 2011

Qurrayah IPP phase two will have a capacity of 1,800-2,000MW

Saudi Electricity Company (SEC) plans to launch the tender for developers to build the second phase of the Qurrayah independent power project (IPP) by the end of 2011.

Qurrayah IPP 2 will have a capacity of 1,800-2,000MW. It is not yet clear whether the advisers on the first phase of the project, which is currently being tendered, will advise on the second phase.

The US’ Citigroup is financial adviser to the state-owned company on the first phase, and the law office of Mohammad bin Saud al-Rasheed, in association with Baker Botts, is legal consultant. Germany’s Fichtner is technical consultant.

While the second phase is likely to be gas-fired, it has not yet been confirmed. Qurrayah phase one was originally launched as an oil-fired facility when developers were first approached in May 2010. By August, SEC had taken the decision to change the fuel for the project to natural gas.

This was followed by internal discussions on the possibility of re-launching the project as an oil-fired facility again, but the idea was rejected.  SEC issued a request for proposals (RFP) to seven prequalified bidding groups for the first phase in November 2010, with a deadline of 28 February.

SEC plans to tender another IPP at Dhebba in the north west of the country in 2012. It will have a capacity of 1,600-1,800MW and first power is scheduled to come online by 2016.

SEC has unveiled its power plant programme from 2012-17. Each of these future projects may be tendered as IPPs or engineering, procurement and construction (EPC) projects.

A 1,760MW power plant, PP14, is set to be tendered in 2014 and come online in 2017. Another plant will be built at Al-Raies and will have a capacity of 1,800MW. It will also be tendered in 2014 and come online in 2017.

Two large power projects will be tendered in 2015 and are scheduled for completion by 2018. The Ras al-Zour power plant will have a capacity of 2,520MW, while the Al-Raies 2 plant will have a capacity of 1,800MW.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications