Saudi Arabia awards $2.44b power plant deal
China's Sepco III will build 2,400-MW integrated complex including desalination facility
Riyadh, Khobar: Saudi state-owned Saline Water Conversion Corp (SWCC) has awarded a $2.44 billion (Dh8.97 billion) power plant contract to a group led by China's Sepco III Electric Power Construction Corp, an industry source said Tuesday.
The group, which includes Saudi Arabia's Al Arrab Contracting Co, will build a 2,400 megawatt (MW) plant that will be integrated with a water desalination facility in Ras Azzour, on Saudi Arabia's Gulf coast.
Sepco III and Al Arrab's bid was the lowest.
"A letter of award has already been sent to them and the contract will be signed soon," the source said. A SWCC spokesperson could not be reached for comment.
Last week, South Korea's Doosan Heavy Industries and Construction Co Ltd said it had won a $1.46 billion contract to build the desalination plant.
The plant, expected to be the world's largest when it comes on stream in 2014, will produce 1.025 million cubic metres of desalinated water per day.
The cost of the project is below initial estimates of $6 billion when Japan's Sumitomo Corp was leading a consortium to build and operate the plant.
SWCC will take 1 billion litres of the plant's water production capacity. Saudi Arabian Mining Co (Ma'aden) will take 1,350 megawatts, and 1,050 MWs will be allocated to Saudi Electricity Co (SEC).
In\ Ras\ Azzour,\ Maaden\ and\ US\ Alcoa\\ are\ building\ a\ \$10.8\ billion\ aluminium\ project,\ which\ would\ be\ the\ world'\;s\ largest\ fully\ integrated\ aluminium\ complex\ when\ completed\ in\ 2013.\
Shipments
Meanwhile, container volumes at Saudi Arabia's ports rose 8.9 per cent in July to 13.9 million tons compared with the year earlier, the Saudi Ports Authority said Monday.
Imports at the kingdom's eight ports rose by 6.8 per cent to 6.02 million tons in July, while exports increased 10.6 per cent to 7.9 million tons, the port authority said in a report posted on its website.
In the January-July period, total container volumes handled by the ports in the Arab world's largest economy came in at 86.7 million tons versus 80.9 million tons during the same period in the year earlier.
