| Country |
: |
Saudi Arabia |
| Project Value |
: |
USD 5,000,000,000 Estimated |
| Sector |
: |
Power and Water | Power Generation, Water Desalination
|
|
Consultant |
: |
Fichtner Consulting Engineers
(Technical) |
|
Contractors |
: |
Doosan Heavy Industries and Construction Company Limited (Middle East Operation Center)
(EPC - desalination package) |
Siemens
(Supplier) |
Al Arrab Contracting Company
(EPC - power package) |
Shandong No. 3 Electric Power Construction Corporation (SEPCO III)
(EPC - power package) |
| Profile Type |
: |
Standalone Project
|
| Associated Projects |
: |
| Related Projects (1) |
|
Phase:
EPC - Execution
|
|
Completion: Q1 2014
|
|
|
|
| Background |
The Saline Water Conversion CorporationSaline Water Conversion Corporation (SWCC) plans to develop a new combined cycle power and desalination plant in Ras Al Zour in the eastern province, in Saudi Arabia.
The purpose of the project is to meet the national power demand and supply power to Maaden's aluminium complex.
The project is the result of merging two projects: the planned Water and Electricity CompanyWater and Electricity Company’s Ras Al Zour IWPP and the captive power plant held by Saudi Arabian Mining Company’s (Maaden) for the aluminum complex built nearby.
The project will have a total capacity of 2,350 MW of power and 226 million g/d of desalinated water, whereby Maaden will take 1,350 MW and 6 million g/d , SWCC will take 220 million g/d and SEC will take 1,000 MW of power.
WECWEC’s original plan was to make Ras Al Zour the world’s largest IWPP with a capacity of 3,000 MW using oil as fuel, however due to the merge with Saudi Maaden, the proposed power plant will use crude oil as feedstock.
According to the previous plan, the awarded developer was supposed to hold 60% of the project company, the Public Investment FundPublic Investment Fund 32% and Saudi Electricity CompanySaudi Electricity Company 8%. The project company would sell its entire output to the Water and Electricity CompanyWater and Electricity Company (WECWEC) under a 20 year power and water purchase agreement (PWPA).
Fichtner Consulting Engineers is the technical adviser. |
| Expected Events |
| Schedule |
Contract Phase/Phase |
Description |
| Dec 2012 |
Completion | First phase expected to be completed | | Q1 2014 | Completion | Project expected to be completed
|
|
| Latest Events |
In March 2012, the construction of the project was in progress.
In December 2012, the first phase of the project is expected to be completed.
In Q1 2014, the project is expected to be completed. |
| Previous Events |
In February 2011, SEPCO III awarded Siemens a USD 1 billion order to supply 12 gas turbines, 10 heat-recovery steam generators, five steam turbines and associated auxiliary and ancillary systems.
In November 2010, the construction of the power and desalination plant started.
On 9 November 2010, SWCC signed the EPC contracts with Doosan Heavy Industries and Construction company and SEPCO III.
On 1 September 2010, SWCC awarded the EPC contract for the desalination package to Doosan Heavy Industries and Construction company and the EPC contract for the power package to SEPCO III (contract award was delayed from Q1 2010, July 2010 and August 2010).
On 23 May 2010, the bids for the EPC contract were opened.
On 19 May 2010, bidders submitted their proposals for the EPC contract for the power and water packages. The bids submission deadline for the EPC contract was previously delayed from 20 March 2010 to 20 April 2010. SEPCO III teamed up with Al Arrab Contracting Company was the lowest bidder (USD 2.45 billion) for the power package. Samsung Engineering and Sasakura Engineering Company submitted the lowest bid (USD 1.89 billion) for the desalination package.
On 5 December 2009, the RFP for the EPC contracts for the power and desalination packages was issued (delayed from August 2009). 7 companies submitted their proposals for the power plant package and 5 companies for the desalination plant package.
On May 2009, SEC, Maaden, and SWCC implemented the plant after the government took over the project. SWCC proposed to merge the project with the integrated aluminum complex planned by Maaden.
In April 2009, the government took over the project and decided to implement the project on an EPC basis due to the difficulties that Sumitomo Corporation faced in replacing Malakoff International which dropped out from the consortium.
In Dec 2008, WECWEC signed the BOO contract with the consortium of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive Company.
In October 2008, the BOO contract was awarded to the consortium of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive Company.
On 29 June 2008, WECWEC opened the bids for the BOO contract.
On 28 June 2008, bidders submitted their proposals for the BOO contract.
In June 2007, the RFP for the BOO contract was issued. |
| Scope of Work |
Construction of a 2,350 MW combined cycle power plant and a 1 million cu.m./d RO desalination plant with associated facilities. |
| Financing Source |
HSBCHSBC is the financial adviser. Clifford Chance and the Law Firm of Yousef and Mohammed Al Jadaan are the legal advisers.
The MLAs include Citigroup, Sumitomo Mitsui Banking Corporation, Royal Bank of Scotland, Bank of Tokyo Mitsubishi and and Mizuho.
In January 2011, the financial closure is expected.
In February 2009, the financing of the project was secured and the PWPA was signed. The project will be financed through a USD 3.5 billion debt and a USD 1.5 billion syndicated by the MLAs. Japan Bank for International Corporation (JBIC) will provide 60 % of the debt financing (USD 2.5 billion), Saudi banks will provide USD 1.2 billion and international banks will provide USD 500 million. |
| Related Projects |
|
| Project News |
|
|
| Schedule | Contract Phase/Phase | Description |
| Jun 2007 |
BOO | RFP issued
|
| 28 Jun 2008 |
BOO | Bidders submited their proposals
|
| 29 Jun 2008 |
BOO | WECWEC opened the bids and started the evaluation process
|
| Oct 2008 |
BOO | Contract awarded to the consortium of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive Company
- Al-Rajhi International Investment, Al-Khorayef Group, Taiwan Power Company, Taiwan Cogeneration Company, and Taiwan Water Corporation
- International PowerInternational Power
- JV of Acwa Power Projects and Korea Electric Power Corporation (Kepco)
- JV of Arabian Bemco Contracting, Hong Kong Electric International, and Gulf Power International
- JV of Marubeni Corporation and Suez Tractebel
- SembCorp Utilities
- Union Fenosa
|
- JV of Acwa Power Projects and Korea Electric Power Corporation (Kepco)
- JV of Marubeni Corporation and Suez Tractebel
- JV of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive
|
- JV of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive
|
|
| Dec 2008 |
BOO | Contract signed with the JV of Sumitomo Corporation, Malakoff International, and Al Jomaih Automotive Company
|
| Apr 2009 |
Planning | Government took over the project and decided to implement it on EPC basis
|
| 05 Dec 2009 |
EPC | RFP issued
|
| 19 May 2010 |
EPC | Bidders submitted their proposals for the power and desalination packages
|
| 01 Sep 2010 |
EPC | Contract for desalination package awarded to Doosan Heavy Industries and Construction company and for the power package to SEPCO III and Al Arab contracting Company
- Consortium of Siemens and Hyundai Engineering and Construction
- Doosan Heavy Industries and Construction Company Limited (Middle East Operation Center)
- Doosan Heavy Industries and Construction Company Limited (Middle East Operation Center)
- JV of Arabian Bemco Contracting Company and Iberdrola
- Jv of Fisia Italimpianti and Arabian Bemco Contracting Company
- Sasakura Engineering Company
- Shandong No. 3 Electric Power Construction Corporation (SEPCO III)
- Sidem Saudi Ltd.
|
- Doosan Heavy Industries and Construction Company Limited (Middle East Operation Center)
- Shandong No. 3 Electric Power Construction Corporation (SEPCO III)
|
|
| Nov 2010 |
Construction | Construction started
|
| 09 Nov 2010 |
EPC | Contracts signed with Doosan Heavy Industries and Construction company and SEPCO III
|
| Feb 2011 |
Supply & Installation | SEPCO III awarded siemens a USD 1 billion supply order
|
| Dec 2012 |
Completion | First phase expected to be completed
|
| Q1 2014 |
Completion | Project expected to be completed
|
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