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Power and Water Plant Worth $4.2 Billion Contracted in Saudi Arabia

Saudi Arabia : 10 November 2010

Contracts valued at SR 15.68 billion (or $4.2 billion) were signed in Saudi Arabia where plans to construct a gigantic power and water plant, Ras Az Zawr, are now underway according to official national media.

The Minister of Water and Power, Abdullah al-Hussayen, put his signature on the deal worth 9.07 billion riyal.  Al-Hussayen is chairman of SWCC (Saline Water Conversion Corporation) and gave the go ahead for Al-Arrab Contracting to begin construction on the power project located on Saudi’s Gulf coast.

Executive VP of Al-Arrab, Samer Arafa, stated that construction is set to last 42 months.  There will be 2,400 megawatts of capacity with the ability to generate a further 350 MW, as outlined in the project plans.

Al-Arrab was awarded the project in September, working along with Sepco III Electric Power Construction.  This firm is out of China.

Integration between the power plant and a water desalination facility includes a further contract for 6.61 billion riyal.  This was awarded to a consortium between Doosan Heavy Industries and Construction out of South Korea and local firm Saudi Archirodon.

In September Doosan reported that the water plant contract, valued at $1.46 billion, will produce the largest water plant on the globe by the 2014 completion date.  Production of desalinated water at the facility will reach 1.025 million cubic meters per day.

Total cost to build this plant currently falls below the initial $6 billion estimate put forth when the consortium led by Sumitomo of Japan was in line for construction and operation.

One billion liters of water produced by the plant will be taken by SWCC, while 1,050 megawatts of power will be issued for use by SEC (Saudi Electricity Company).  A further 1,350 megawatts will be taken by Maaden, the Saudi Arabian Mining Company.

Also within Ras Az Zawr, plans to build a $10.8 billion aluminium complex are underway and backed by a partnership between Maaden and Alcoa, a US-based aluminium firm.  Upon completion in 2014, this facility will become the largest fully integrated one of its kind in the world.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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