Switzerland-based ABB has won a $38m contract to improve the efficiency of substations in Saudi Arabia.

The contract covers 22 power distribution substations serving the Mecca, Medina, Jeddah and Taif areas.

ABB will supply Saudi Electricity Company with technology to improve the substations’ power factor, an indicator of the usable power available in the electricity grid. ABB will design, engineer, supply, install and commission the equipment. It will complete the project in 2011.

The company won a similar $60m contract for 28 substations in August. The deal covered 19 substations rated 33/13.8 kV in the central, southern and northwestern provinces, and nine 132/33 kV substations in the Riyadh area. This work is due to be completed by 2010.