Under the estimated $140 million-150 million EPC contract, Siemens will build a 250-MW co-generation plant, fired by two W501D5A turbines will also produce 510 tonnes of steam. The electricity and steam will be produced as part of the 20-year ECA and will serve Sadaf's petrochemical facilities in Jubail. The project is due to be completed in the second quarter of 2005. Feedstock for the plant is supplied from Saudi Aramco.

The successful conclusion of negotiations on the IPP is considered a major breakthrough for private power in the kingdom. 'This is a landmark deal and we hope that it will now be much easier for other IPPs in the kingdom to succeed,' says an industry source.

Several other IPPs are planned in Saudi Arabia. Saudi Aramco on 30 June received bids from two consortia for the development of four IPPs, with total capacity of about 800 MW, on a build-operate-transfer (BOT) basis. Saline Water Conversion Corporation (SWCC) and Saudi Electricity Company (SEC)are also preparing to invite developers to express their interest in the first of four independent water and power projects (IWPPs - see below).

The project company JEC is a 75:25 joint venture between the local National Power Company (NPC)and the US' CMS Energy Corporation. NPC itself is a 50:50 joint venture between the local AH Al-Zamil Group and the El-Seif Group(11:10:02).

CMS was selected as the foreign developer on the IPP in April 2001.