A total of 24 companies submitted prequalification applications in September for the 20-year concession. The project will resemble the structure of the Shuaibah IWPP, using the BOO model, providing the same 20-year power and water purchase agreement (PWPA) as a basis and offering the same guarantees (see Cover Story; MEED 21:10:05).
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).
Developers have voiced concern that the tender for Shuqaiq might be released in parallel to the issuing of revised RFPs for the Jubail IWPP planned by Power & Water Utilities Company for Jubail & Yanbu (Marafiq)
. Should the two coincide, some fear that interest in Shuqaiq will be limited as developers concentrate on Marafiq, in which they had already spent considerable time and expense before the project was significantly altered earlier this year (MEED 20:5:05).
The advisory team on both Shuaibah and Shuqaiq comprises HSBC
(financial), Germany’s Fichtner
(technical) and Clifford Chance
with the local Law Firm of Yousef & Mohammed al-Jadaan