Saudi Electricity Company Signs Contracts For $616Mn
The Saudi Electricity Company (SEC) has signed five contracts worth SR2.311mn ($616mn) to build or upgrade power stations in the kingdom, SEC’s Executive Director 'Ali al-Barrak announced last week. The first contract for SR716mn ($191mn) to build a transformation station at al-Qasim went to Siemens; the second for SR645mn ($172mn) to build a transformation station east of the Madinah al-Munawwarah went to the local Toukhi Trading, Industrial and Contracting Company; the third for SR495mn ($132mn) to build al-Kandarah transformation plant went to al-Fanar Construction Company; the fourth for SR59mn ($16.7mn) to build the Sudair transformation plant was awarded to Siemens; and the fifth for SR396mn ($105.6mn) to expand the Dhia power plant was awarded to Jazirah Star Trading and Contracting Company.
Arabian Bemco will be building SEC’s PP10 power plant located outside Riyadh, which will supply 2,000 mw of power and is expected to cost SR9-10bn ($2.4-2.6bn). The contractor will require letters of credit and guarantees, which will be provided by a group of domestic banks, with one soon to be chosen as coordinator on the transaction, MEES understands. Developers’ bids are also due in August on SEC’s Rabigh 1,200 mw oil fired independent power project (IPP). The request for proposal was issued in March and bidder groups are currently under formation. Rabigh’s power and water purchase agreement (PWPA) is due to be signed in December and financial close anticipated for the first quarter of 2009. Citibank is the financial advisor on the Rabigh project.
Copyright MEES 2008.
