Marafiq Extends Jacobs� Project Management Contract

By David Knott

The Power and Water Utility Company for Jubail and Yanbu� (Marafiq) has awarded Jacobs Engineering Services a one-year extension to its project management contract for ongoing investment in Saudi Arabia. The value of the contract has not been disclosed. Jacobs provides project management contractor (PMC) services for projects in Jubail and Yanbu� industrial cities.

�The work includes conceptual design, front end engineering, tender support, construction/commissioning supervision and other services necessary for successful capital program delivery. Projects involve expansions, upgrades and installations of wastewater treatment plants, desalination plants and electrical power generation facilities,� said Jacobs on 2 October.

�Marafiq has developed the world�s largest independent water and power plant (IWPP) project at Jubail, with capacity to generate 2.745gw of electricity and desalinate 800,000 cmd of water. The company is also developing the Yanbu� 2 power and water project, which will have capacity to deliver 690mw of electric power and desalinate 60,000 cmd of water. Yanbu� 2 was originally intended to be an IWPP project, but because of problems raising finance under this model, Marafiq opted for an engineering, procurement and construction (EPC) contract format (MEES, 13 July 2009).

The Yanbu� 2 PMC contract was awarded to Jacobs in September 2011 and the EPC contract � reportedly worth $1.05bn � was awarded in early 2011 to South Korea�s Hanwha Engineering and Construction. Construction work began in March 2011 and project start-up is expected in 2014. The Yanbu� 2 power plant will mainly run on heavy fuel oil, although it will also be able to use Arabian Light crude as feedstock.

Desalination Plant Award

In related news, Marafiq has awarded Spain�s Acciona Agua and Saudi Binladin Group a contract for the design, construction and commissioning of a desalination plant at Jubail. Acciona Agua said on 1 October that the desalination plant, designated SWRO-4, is expected to come into operation at the end of 2014. The company added: �It will have a capacity of 100,000 cmd, representing well over twice the combined capacity of the city�s existing five desalination plants. Construction of the new plant is expected to begin in the coming weeks.�

Copyright MEES 2012.