Shuqaiq attracts 24

28 October 2005
The prequalification shortlist is expected to be announced by the end of October on the second Water & Electricity Company (WEC) independent water and power project (IWPP) at Shuqaiq. Request for proposals (RFPs) documents are expected to be issued soon after. A total of 24 companies and groups responded to the request for qualification (RFQ) documents by the 17 September deadline, less than half the 53 companies to have expressed interest in the build-own-operate (BOO) project earlier in the year (MEED 24:6:05).

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 Chancewith the local Law Firm of Yousef & Mohammed al-Jadaan(legal).

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).

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