14 July 2009

Saudi Electricity looking for more power

State-run Saudi Electricity Company (SEC) needs more power and now wants bidders for a 2,000 megawatt power plant project in Riyadh.

The combined cycle plant project in the Saudi capital will start its first phase of operation by 2012, said Amr Aswaha, head of projects for independent power projects.

Bidding ends in December, with a decision expected in March 2010, he said.

It is a simple fact the country needs more power. With all the infrastructure projects under way, Saudi Electricty, the largest Gulf utility by market value, is trying to satisfy all the demand for power.

Separately, SEC signed a contract on Saturday with a consortium led by Korea Electric Power Corp. to build the 1,200 megawatt Rabigh fuel-oil fired power plant.

Funding for the $2.53 billion project will come from a consortium of banks led by Alinma Bank, which expects to contribute about $500 million, said Abdulmohsen al-Fares, the bank’s chief executive.

The plant will go up in two phases, the first of which will deliver 600 megawatts by 2012, while the next 600 megawatts will come on line in 2013.

For related information, go to www.isa.org/productivity.