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$2.44 Billion Power Plant Contract Awarded in Saudi Arabia

Saudi Arabia : 09 September 2010

Sepco III of China is to construct a 2,400 megawatt integrated power plant that will include desalination facilities

Industry sources reported that Saline Water Conversion Corporation (SWCC) issued a power plant contract worth $2.44 billion (Dh 8.97 billion) to a Sepco III Electric Power Construction Corporation-led group.  SWCC is owned by the Saudi state and Sepco III is based in China.

Al Arrab Contracting Company from Saudi Arabia is also in the group that is set to construct a 2,400 MW power plant.  A water desalination service will also be included in the facilities located in Ras Azzour along the Gulf Coast of Saudi Arabia.

Sepco III and Al Arrab submitted the lowest bid.

Source reports state that an award letter has been sent to the group, with a contract set for signing in the near future.  SWCC was not available to make any comments.

It was reported last week that Doosan Heavy Industries, a South Korean firm, was the winner of a $1.46 billion contract for the construction of the desalination plant.

Once the plant is operational in 2014 it should be the largest of its kind on the globe and produce desalinated water at a rate of 1.025 million cubic meters each day.

This stated cost is well below initial forecasts of $6 billion put forth when a group led by Sumitomo Corporation of Japan was reported to be constructing and operating the plant.

SWCC will be responsible for the production of 1 billion liters of desalinated water.  Ma’aden, a mining firm out of Saudi Arabia, is set to take on 1,350 MW and the Saudi Electricity Co (SEC) will take 1,050 MW.

Ma’aden and Alcoa, a US-based firm, are working on the construction of a $10.8 billion aluminium complex in Ras Azzour, slated to be the largest of its kind on the globe upon completion in 2013.

Shipment Volumes

In the meantime, the volume of containers going through the ports in Saudi Arabia throughout July climbed 8.9 per cent higher than previous years, up to 13.9 million tons as reported by the local Ports Authority.

The eight ports in the Kingdom saw imports rise by 6.8 per cent in July, hitting 6.02 million tons.  Exports rose 10.6 per cent, climbing to 7.9 million tons according to the local port authority’s website.

In the period from January to July the ports in Saudi Arabia handled 86.7 million tons in total container volume. This is compared to 80.9 million tons that was handled during that same time period last year.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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