Saudi Electricity Gets 3 Rabigh Plant Bids

Three international firms have made bids ranging between US$3.94-US$4.34 billion to build a 2,400 megawatt (MW) power plant for state-run Saudi Electricity Company, an industry source said on 17 December 2009.

South Korea's Doosan Heavy Industries & Construction is the lowest bidder with US$3.94 billion, said the source, who did not wish to be identified.

Hyundai Heavy Industries' bid came at US$3.97 billion and that of France's Alstom amounted to US$4.34 billion, he said.

Doosan declined to comment, Hyundai Heavy Industries and Alstom were not immediately available for comment.

Bidding for the plant closed on 15 December 2009.

The power plant would have capacity of 2,400 to 2,800 MW, some 12%-14% of the 20,000 MW the SEC plans to add through 2018, at an estimated total cost of US$80 billion. SEC's capacity is around 40,000 MW.

The bids were in line with SEC's cost estimates.

An SEC executive estimated the cost of the plant at around US$4 billion, down from an initial estimate of around US$5 billion.

The executive said at the time contracts would be awarded by 2009-end, but contractors had said it may take until the first quarter for the awards to be made.

The plant is expected to be completed in the summer of 2014.

Saudi Arabia is facing rapidly growing power demand as the kingdom builds infrastructure and industries that would help its plans to diversify its economy away from heavy reliance on oil exports revenue.

Demand is growing at around 7%-8% per year. – Reuters, Trade Arabia