Mitsubishi, Gulf Investment and ACWA secure Saudi utilities deal

Kuwait: Japan's Mitsubishi Corp plus Gulf Investment Corp (GIC) and ACWA Power Projects have been selected to build and operate a water and power project in Saudi Arabia, Kuwait-based GIC said yesterday.

The consortium was selected as a preferred bidder for the project, which consists of a thermal power plant and a desalination plant and support facilities for the two utilities in the southwestern Saudi Arabian coast, a statement said.

"WEC [Saudi Arabia's Water and Electricity Co.] selected the consortium following a competitive tendering process," the statement said, adding the tender received three bids from global consortia.

The Shuqaiq Independent Water and Power Project (IWPP) will be developed on a build, own and operate (BOO) basis and will increase power and water supplies to Abha and Jizan regions, added GIC.

The complex will generate 850 megawatts of power and 47 million imperial gallons per day of water.

The project is the second IWPP being developed by WEC and represents a major development in the Saudi water and power sector to help satisfy increasing demand in the desert kingdom.

"The consortium and WEC intend to enter into a series of agreements including a 20-year power and water purchase agreement by this year's end," the statement added.

WEC, set up in 2003 and owned by Saline Water Conversion Corporation (SWCC) and Saudi Electricity Co. (SEC), will buy the project's water and electricity then sell it to SWCC and SEC.