Saudi IWPP attains full production
Jeddah, August 9, 2009
Saudi Arabia’s first independent water and power project (IWPP), developed by the Shuaiba Water & Electricity Company (SWEC), is now in full production.
The project, located 90 km south of Jeddah, provides 880,000 cu m of desalinated water per day, and 900 MW of electricity to Saudi water and electricity grids.
The plant is considered one of the largest IWPPs in the world, playing a major role in providing water and electricity to the Western Region of the kingdom (Makkah, Jeddah, Taif and Al Baha areas).
Established by a Royal Decree, the government has a 40 per cent share in the project, while a Saudi-Malaysian consortium owns the remaining 60 per cent.
The government’s share is owned by the Public Investment Fund (32 per cent) and the Saudi Electricity Company (8 per cent).
In June 2005, the Saudi-Malaysian consortium comprising ACWA Power International of Saudi Arabia, Tenaga Nasional Berhad, Malakoff Berhad and Khazanah Berhad of Malaysia were selected as the first ranked bidder to ‘Build, Own and Operate’ (BOO) the Shuaiba IWPP.
The 20-year contract was closed in January 2006, with a total project cost of $2.5 billion.
The successful completion of Shuaiba IWPP is a significant milestone in the kingdom’s privatization program and should give developers and their lenders considerable confidence for future IWPPs, the statement said.
Dr Yahya Abdullah Al Yahya, SWEC’s chairman, said: “We are proud to announce the commissioning at full production. We have delivered on time, on schedule and within the agreed financial budget. The plant is built to meet the maximum level of quality and efficiency standards, despite the challenges in 2007 and 2008 due to the lack of labor force and construction materials. The success of this project, the first of its kind in the kingdom, leads the way for similar future investment to better meet the needs of the Saudi people. SWEC is an excellent example of a successful public/private partnership in Saudi Arabia.”
Omar Flaihan, SWEC’s executive managing officer, said: “We appreciate the high level of professionalism shown in the project implementation within SWEC and by our partners and advisors. Everyone has worked incredibly hard to deliver this leading edge technologically-advanced project.” –TradeArabia News Service