Expressions of interest for the project will be followed by prequalification requests before the end of the third quarter. Requests for proposals are due to be issued to prequalified developers before the end of the year. The successful foreign developer will take a stake in a new project company, which will implement the work on a build-operate basis.

The Shouaiba plant, located 120 kilometres south of Jeddah, falls under phase 1 of the IWPP programme. The other project under the first phase is the 700-MW, 24 million-g/d Shuqaiq plant, which will be located 120 kilometres south of Abha, also on the Red Sea coast. No timeframe has been given for tendering the project. Under phase 2, new IWPPs will be built at Ras al-Zour and Jubail on the Gulf coast.

The IWPPs, with the exception of Shouaiba, were originally planned to be included in the Saudi gas initiative. However, due to lengthy negotiations on the gas initiative and the urgent need to increase water and energy production capacities, SWCC and SEC decided to handle the projects separately.

The SEC/SWCC advisory team comprises HSBC, the financial adviser, Germany's Fichtner, the technical adviser, and Clifford Chancewith the local Law Firm of Yousef & Mohammed al-Jadaan, the legal advisers. SWCC and SEC have already formed a joint subsidiary, the Water & Electricity Company, which will act as the offtaker.