1 November 2005
JEDDAH-- Zamil Steel has bagged the SR 33.7 million ($9m) contract to supply structural steel products for Phase 2, Stage 2 of Shoaiba Power Plant (SPP) project in Saudi Arabia. The contract raises the total cumulative value to SR163 million ($43 million) for structural steel works executed by Zamil Steel on previous stages and phases of this project.
"Zamil Steel has been awarded this contract based on proven performance and an impressive track record in the previous phases and stages of this large scale undertaking," said Adnan Al-Mansour, executive vice president, Zamil Steel Industries.
"This includes consideration for the high quality of our products, demonstrated efficiency in delivering upon our commitment and our competitive pricing offer, Al-Mansour was quoted as saying in local newspapers on Wednesday.
A consortium of Alsthom Power of France and Saudi Archirodon is the main contractor for the Shoaiba Power Plant project. Saudi Archirodon has partnered with Zamil Steel on all previous stages and phases of this crucial project. More than 30,000 metric tons of structural steel has already been provided for earlier phases and stages, and in this latest win Zamil Steel's structural steel business unit will provide steel for building structures and pipe racks. Delivery has commenced in September and is targeted for completion in April 2006.
Zamil Steel has recently made substantial infrastructure investments in expanding its manufacturing facilities and production capabilities in order to meet rising global demand.
Investment needs in Saudi Arabia's power and water sector is estimated to be in the region of $200 billion over the next 20 years, which means $10 billion every year till the year 2025, according to Dr. Adil A. Bushnak, chairman, infrastructure committee, Jeddah Chamber of Commerce and Industry (JCCI), who is also Chairman of Bushnak Group.
"This is a critical infrastructure sector, and needs huge investments. I estimate $200 billion over the next 20 years. So we are talking about $10b per year. That can be multiplied three to four times for the size of the regional sector, Bushnak told Khaleej Times.
The Cabinet recently approved the establishment of the Shuaiba Water and Electricity Company (SWEC), the first privately owned company for the production of water and electricity. It would develop, establish, operate and maintain the Shuaiba-3 project for the production of water and electricity, transporting and distributing and conducting all related activities.
According to the Arabic daily Al-Riyadh, the company was expected to begin operation in 2007. Foreign investors would be allowed to participate in the establishment of the SWEC, which is estimated to cost SR5 billion and produce 880,000 cubic metres of water and between 650 to 900 megawatts of electricity daily.
FROM OUR CORRESPONDENT
© Khaleej Times 2005
