State-run Saudi Electricity Company (SEC) has entered into a contract with a consortium led by Korea Electric Power Corp (KEPCO), to build the 1,200 MW Rabigh fuel-oil fired power plant, reported Khaleejtimes. The KEPCO-led consortium has emerged as favourite bidder, leaving behind consortium of Belgium’s Suez, UK’s International Power and private Saudi Oger.
According to Abdulmohsen Al-Fares, CEO of Alinma Bank, funding will be provided by a consortium of banks led by Alinma Bank, which is expected to provide about $500 million. SEC said in a statement that other banks in the consortium include Bank of China, Calyon, HSBC, National Commercial Bank, Banque Saudi Fransi, Samba Financial Group and Standard Chartered.
The plant will be built in north of Jeddah in two phases. The first phase is expected to be completed by 2012 and deliver 600 MW, while the second phase is expected to deliver the remaining 600 megawatts by 2013. Ali al-Barrak, CEO of SEC, said that the company would have 20% of the $2.7 billion project.
Most of the industrial zones in the kingdom are struggling with severe power shortages of up to five hours a day over the past one month as demand exceeded supply. SEC is trying to find ways to be on par with surging demand for power so that the ongoing infrastructure related projects run without any glitches.
