The estimated $1,250 million 20-year concession covers the development of an 850-MW and 47 million-gallon-a-day (g/d) power and desalination plant. The scheme will resemble the structure the Shouaiba IWPP, using the BOO model, providing the same 20-year power and water purchase agreement (PWPA) as a basis and offering the same guarantees.
As on Shouaiba, WEC will provide heavy crude feedstock to the potential developer, removing any fuel supply risk. The selected developer group will take a 60 per cent stake in a new project company, with the remaining 40 per cent to be split between the Public Investment Fund (PIF), with 32 per cent and Saudi Electricity Company (SEC),
with 8 per cent (MEED 25:3:05).
Financing for the 900-MW, 176 million-g/d Shouaiba IWPP is due to be launched imminently. A local/Malaysian consortium was selected as the preferred bidder for the scheme earlier in the year, and is also expected to sign the PWPA soon (MEED 14:10:05; 19:8:05).
The advisory team on both Shouaiba and Shuqaiq comprises HSBC
(financial), Germany’s Fichtner
(technical) and Clifford Chance
with the local Law Firm of Yousef & Mohammed al-Jadaan
The revised RFP is also under preparation at Power & Water Utilities Company for Jubail & Yanbu (Marafiq)
. Sources close to the project say the tender process will not be launched until December at the earliest (MEED 22:7:05).