Saudi Relaunches Power Project Bid

Saudi Arabia will invite bids in mid-November 2009 for a turnkey contract to build a giant power and water desalination units which was intially going to be awarded to Japan's Sumitomo Corporation, the project's pilot said. Fuhaid bin Fahd Al-Sharif, governor of the state-controlled Saline Water Conversion Corp (SWCC), said the Japanese firm is welcome to make fresh bids for the Engineering, Procurement and Construction (EPC) contracts for the Ras Azzour plant.

Sumitomo said in May 2009 it has put on hold its consortium's plans for the US$6 billion power and water desalination plant after the Saudi government said the plant was no longer designated an independent project. 'They are welcome but they will not get a preferential treatment. We want to reduce the cost of the project although we have increased its production capacities,' Sharif said in an interview. SWCC signed this week an agreement with mining firm Maaden and power utility Saudi Electricity Company - both of which are also state-controlled - to build the plant. - Trade Arabia