Latest News

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  Abu Dhabi tenders 400MW battery storage contract

  Administrator

  25 July 2024

  State offtaker Emirates Water & Electricity Company (Ewec) has invited prequalified companies to submit their proposals for a contract to develop and operate an independent 400MW battery energy storage system (bess) power project in Abu Dhabi.

  Ewec expects to receive bids by the fourth quarter of 2024.

  The planned facility is expected to provide up to 800 megawatt-hours (MWh) of storage capacity.

  Called Bess 1, the project will closely follow the model of Ewec's independent power project (IPP) programme, in which developers enter into a long-term energy storage agreement (ESA) with Ewec as the sole procurer.

  The first plant will be in Al-Bihouth, approximately 45 kilometres (km) southwest of Abu Dhabi, and the second plant will be in Madinat Zayed, about 160km southwest of the city.  

  According to Ewec, the request for proposals is being issued to 27 prequalified companies and consortiums, out of the 93 companies that submitted an expression of interest to bid for the contract in April this year.

  It did not specify the prequalified companies.

   MEED previously reported that the companies that submitted SOQs to bid for the contract include:

  • Acwa Power (Saudi Arabia)
  • EDF (France)
  • GE (US)
  • Jera (Japan)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Samsung C&T (South Korea)

  Sources also cited that "several Chinese Bess manufacturers and suppliers" have applied to prequalify as investors in the project.

  The ESA will be for 15 years, commencing on the project's commercial operation date, which falls in the third quarter of 2026. 

  According to Ewec, the Bess project will provide additional flexibility to the system and ancillary services such as frequency response and voltage regulation.

  "Ewec is deploying BESS to enhance the flexibility and stability of Abu Dhabi’s energy network, allowing for the effective management of peak demand and integration of increasing amounts of renewable energy," the utility said in a media statement on 25 July.

  It added: "BESS technology will also provide crucial ancillary services such as frequency response and voltage regulation, further reinforcing the security of supply and supporting Ewec to increase its solar photovoltaic (PV) capacity to 7.5 gigawatts (GW) by 2030.

  "This accelerated growth in renewables will significantly reduce the carbon dioxide intensity of Ewec's power supply, from 330 kilograms per megawatt hour (kg/MWh) in 2019 to an estimated 190 kg/MWh by 2030."

  Global BESS market

  The overall capacity of deployed Bess globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to a recent GlobalData report.

  The report cited Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

  Related read: Abu Dhabi tenders 2.5GW Taweelah C contract

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  Jennifer Aguinaldo
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  Transforming Riyadh into a world-class city

  Administrator

  25 July 2024

  

   

  Riyadh is changing fast. As the Saudi capital, it is not only located in the country’s geographical centre, but also at the heart of Vision 2030 and the kingdom’s economic transformation, with a wide range of ambitious development projects.

  The city wants to be one of the best in the world. “The strategic vision for Riyadh focuses on transforming it into a world-class city that is sustainable, innovative and culturally rich,” says Fahad AlSolaie, deputy mayor for digital transformation and smart cities at Riyadh Region Municipality. 

  “The vision includes improving quality of life for residents, diversifying the economy away from oil dependence, and promoting green and smart urban development.”

  Riyadh’s ambitions are driven by population growth and people visiting the city for major global events. “Riyadh is expected to experience significant population growth in the coming years, driven by its economic expansion and global events hosted by the kingdom, such as Expo 2030 and major sports events,” says AlSolaie.

  “Additionally, the presence of large-scale unique projects like the King Abdullah Global Gardens, the development of Wadi Al-Sulay, King Salman Park and others contribute to the city’s attractiveness and livability, further boosting population growth. It is targeted for the population of Riyadh to reach 10 million residents, reflecting its rising prominence as a business and cultural hub. This growth will enhance Riyadh’s status as a dynamic urban centre, equipped to meet the evolving needs of its expanding population.”

  The vision includes improving quality of life, diversifying the economy, and promoting green and smart urban development
  Fahad AlSolaie, Riyadh Region Municipality

  Infrastructure projects

  Riyadh Region Municipality is playing a key role in the city’s development. “Riyadh municipality is responsible for a wide array of infrastructure projects that are crucial for the city’s development and sustainability. These include paving, asphalting and road stabilisation projects, which are essential for maintaining and improving the city’s road networks,” says AlSolaie.

  “The municipality develops public parks, ensuring that the necessary infrastructure is in place to provide recreational spaces. Bridge and tunnel construction and ongoing enhancements are also a significant focus, aimed at improving traffic flow and connectivity across the city. Furthermore, Riyadh is committed to extensive lighting projects and the maintenance of these systems, with the city one of the largest globally in terms of the number of streetlight poles.” 

  A key responsibility of the municipality is to maintain the city’s cleanliness and environmental health, adds AlSolaie. “This involves regular street cleaning, waste management and pollution control measures to keep the city clean and environmentally sustainable. These efforts are integral to quality of life, contributing to the vision of making Riyadh a more livable and accessible urban environment.”

  Signature schemes

  The municipality is also involved in the delivery of a series of signature projects in and around Riyadh. “The King Abdullah Global Gardens project aims to create a vast green space that combines natural landscapes with high-tech interactive exhibits, promoting environmental education and sustainability,” says AlSolaie. 

  The Wadi Al-Sulay development, meanwhile, is focused on transforming Wadi Al-Sulay into a recreational and cultural destination, featuring amenities that encourage outdoor activities and community gatherings.

  The municipality collaborates extensively with other government agencies and private sector partners to ensure cohesive and integrated development. This includes coordinating efforts on large-scale projects, urban planning and infrastructure improvements to support the city’s growth.

  “The municipality ensures alignment with master developers and major projects through regulatory frameworks, strategic planning sessions and collaborative platforms that facilitate integration of infrastructure projects and urban development efforts across the city,” says AlSolaie.

  With aspirations to become one of the world’s most advanced cities, digital transformation is helping Riyadh achieve its goals. “Digital transformation is vital for Riyadh Municipality for several compelling reasons. Firstly, it enhances service efficiency by adopting digital technologies, streamlining operations, reducing manual processes, minimising errors and speeding up response times. This not only improves service delivery, but also cuts operational costs, allowing for better resource allocation. 

  “Secondly, it improves citizen engagement through digital platforms that enable interactive and responsive communication. Citizens can easily access information, request services and provide feedback, enhancing transparency and building trust.

  “Thirdly, digital transformation fosters innovation in urban management using technologies such as the Internet of Things , artificial intelligence and big data analytics to optimise urban functionalities like smart waste monitor manholes and public safety. 

  “Additionally, it supports economic diversification by modernising infrastructure and services, thus attracting new businesses, especially in the technology sector, aligning with Saudi Arabia’s Vision 2030,” says AlSolaie.

  Online services

  Riyadh Region Municipality is moving its services online as part of the digital transformation. “Riyadh municipality is progressively digitising its services by offering e-services platforms where residents can access various municipal services such as mobile applications, geoportal web application and service requests online, thus increasing accessibility and convenience,” says AlSolaie. 

  The drive to digitise will enable Riyadh to become a smart city. “By implementing advanced technologies such as the Internet of Things, artificial intelligence and geographic information systems, Riyadh Municipality is optimising key city functions such as reducing and monitoring visual pollution, enhancing public safety and conducting environmental monitoring,” he says. 

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  Colin Foreman
• 
  WTTCO tenders water pipeline and reservoir packages

  Administrator

  25 July 2024

  State-owned Saudi water transmission and storage operator Water Transmission & Technologies Company (WTTCO) has issued two tenders involving a contract to build a water transmission pipeline in Dammam City and an engineering design services contract for water reservoir stations.

  The first contract is for the supply and installation of a water transmission system for the Second Industrial City in Dammam.

  WTTCO expects to receive proposals for this contract by 1 August.

  The second request for proposals involves a contract to provide engineering and design services for phases 2 and 3 of WTTCO’s strategic water reservoir station projects.

  The two phases cover reservoir stations in 150 locations and about 750 kilometres of water transmission pipeline.

  WTTCO expects to receive proposals from engineering consultancy firms for this contract by 4 August.

  The company has embarked on one of the world’s largest water conveyance and storage programmes as it seeks to increase potable water supply capacity across the kingdom.

  The expenditure programme, which WTTCO estimates is worth up to SR140bn ($38bn) by 2030, covers 396 individual projects, MEED reported in May.

  WTTCO’s objectives by 2027 are to have a total network size of 15,000km, 9.5 million cubic-metres-a-day transmission capacity, 118 pumping stations and more than 900 storage tanks.

  The capital expenditure programme was outlined in a WTTCO presentation at the Future Projects Forum in Riyadh on 20 May.

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  Jennifer Aguinaldo
• 
  Dubai begins $22bn tunnels developer prequalification

  Administrator

  25 July 2024

  Register for MEED's 14-day trial access 

  Dubai Municipality has invited firms to submit their statements of qualifications (SoQs) for the contracts to develop and operate various packages of the $22bn Dubai Strategic Sewerage Tunnels (DSST) project.

  According to industry sources, the client expects to receive SoQs by 5 September.

  The start of the developer prequalification process for the scheme, which is being procured on a public-private partnership (PPP) basis, comes after the client initiated the prequalification process for engineering, procurement and construction (EPC) contractors.

  EPC companies submitted their SoQs in late April.

  International, regional and local EPC contractors are understood to have sought to prequalify to bid for the contracts.

  The project aims to convert Dubai’s existing sewerage system from a pumped system to a gravity system by decommissioning the existing pump stations and providing “a sustainable, innovative, reliable service for future generations”.

  Dubai currently has two major sewerage catchments. The first in Deira is Warsan, where the Warsan sewage treatment plant (STP) treats the flow.

  The second catchment, called Jebel Ali, is in Bur Dubai, where the wastewater is treated at the Jebel Ali STP.

  MEED previously reported that the overall project will require a capital expenditure of roughly AED30bn ($8bn), while the whole life cost over the full concession terms of the entire project is estimated to reach AED80bn.

  DSST-DLT packages

  Under the current plan, the $22bn DSST project is broken down into six packages, which will be tendered separately as PPP packages with concession periods lasting between 25 and 35 years.

  The first package, J1, comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42 kilometres, and the links will extend 10km. 

  The second package, J2, covers the southern section of the Jebel Ali tunnels, which will extend 16km and have a link stretching 46km.

  W for Warsan, the third package, comprises 16km of tunnels, TPS and 46km of links.

  J3, the fourth package, comprises 129km of links. Once completed, Dubai Municipality will operate them, unlike the first three packages, which are planned to be operated and maintained by the winning PPP contractors.  

  J1, J2 and W will be procured under a design-build-finance-operate-maintain model with a concession period of 25-35 years.

  J3 will be procured under a design-build-finance model with a concession period of 25-35 years.

  J1, J2, W and J3 will comprise the deep sewerage tunnels, links and TPS (DLT) components of the overall project.

  MEED understands the project’s remaining two packages, the expansion and upgrade of the Jebel Ali and Warsan STPs, will be procured in a process separate from the four DSST-DLT components.

  The RFPs for the four DSST-DLT packages will likely be issued sequentially, staggered around six to 12 months apart.

  The bidders for each of the PPP requests for proposals (RFPs) will be prequalified consortiums comprised of sponsors, EPC contractors and operation and management (O&M) contractors.

  Dubai Municipality has appointed Abu Dhabi-headquartered Tribe Infrastructure Group as lead and financial adviser, UK-based Ashurst as legal adviser and US-based Parsons as technical adviser for the DSST project.

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  Jennifer Aguinaldo
• 
  Sports Boulevard tenders district cooling contract

  Administrator

  25 July 2024

  Saudi Arabia’s Sports Boulevard Foundation has invited firms to submit bids for a contract to develop and operate a district cooling plant catering to the development.

  Sports Boulevard runs across Riyadh from east to west. Once complete, it will be the world’s longest park at over 135 kilometres.

  It includes a series of iconic buildings that will be spread across different districts within the park.

  Sports Boulevard Foundation issued the request for proposals for the district cooling build, own, operate and transfer contract on 24 July.

  The work scope includes the development and operation of a district cooling plant catering to District 3 of the development, including that of a chilled water recirculation network and energy transfer stations servicing.

  In July 2023, the developer invited companies to submit bids in early August for a contract to provide project management consultancy (PMC) services for the planned iconic buildings at the Sports Boulevard development

  The 64-month PMC contract covers package four at Sports Boulevard, which includes the Athletic District’s Global Sports Tower; an amphitheatre and cinema arts centre in the Entertainment District; a culinary arts centre and sports tower in the Eco District; and another sports tower in the Arts District.

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  Jennifer Aguinaldo
• 
  The death of political risk

  Administrator

  25 July 2024

  Commentary
  Edmund O'Sullivan
  Former editor of MEED

  On 13 July, an assassin’s bullet missed Donald Trump’s head by an inch.

  Three days later, speakers at the Republican National Congress, which nominated him as its candidate in this year’s US presidential election, heard calls for unwavering support for the assault on Gaza, despite the threat that it might spark a regional conflagration.

  The previous week, Nato leaders shrugged off warnings from Russia’s President Vladimir Putin that the war in Ukraine could trigger a nuclear confrontation, and reaffirmed their support for the ejection of Russia from Ukrainian territory.

  An oil tanker in the Red Sea being hit by a missile fired from Yemen on 15 July looked like a minor development in comparison. But it was another sign of the times.

  What previously was unimaginable has become the new normal, and not just for those watching from the sidelines.

  The markets – now the supreme judges of what is good or bad – think none of this matters much either. The Dow Jones Industrial Index opened higher following the failed assassination of Trump. The consensus was that his survival – not the attempt to end his life – was the real story.

  What previously was unimaginable has become the new normal

  Oil, in contrast, went down despite yet another assault on one of the world’s vital energy supply routes.

  The Washington-based IMF is also sanguine. Its economic outlook report released on 16 July forecasts that world growth will quicken marginally next year to 3.3%.

  Only precious metals markets suggest there may be doubts. Gold is up more than 20% since the start of the year, but this is probably more about inflation than perceptions of political risk.

  Those who argue that prices of securities and commodities capture all relevant information about the course of world affairs have concluded that they signal there is nothing to worry about. The world will barrel ahead next year much as it did in 2024, regardless of further carnage in Gaza and Ukraine and twists in US politics.

  But perhaps sensitivity to events has been dulled by the way they are now reported, particularly on social media.

  Like tight-rope walkers, investors have become accustomed to risks that would be conventionally considered unacceptable. And there is always more money to be made in markets that rise.

  In the spring of 2007, Lehman Brothers chief executive Dick Fuld said in Dubai that he had rarely seen so many positive forecasts for the world economy, though he admitted there were worries about trends in derivatives markets.

  At least he acknowledged the contradiction. What he did not foresee was that it would be the bank he was then leading that would trigger the global financial collapse that came less than 18 months later. 

  ---

  Connect with Edmund O’Sullivan on X

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  More from Edmund O’Sullivan:

  > Italy at centre of new reduced Europe
  > US foreign policy approach remains adrift
  > Rainmaking in the world economy
  > New shock treatment for Egypt’s economy
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  > Lebanon’s pain captured in a call from Beirut
  > Troubled end to 2023 bodes ill for stability
  > The Holy Land and delusions it inspires
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  > Gulf funds help reshape football

  ---

  

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  Edmund O’Sullivan
• 
  Diriyah awards multibillion construction contract

  Administrator

  24 July 2024

  

   

  Register for MEED's 14-day trial access 

  Saudi Arabia’s gigaproject developer Diriyah Company has awarded an estimated SR8bn ($2bn) contract to construct assets in the Wadi Safar development of the Diriyah project in Riyadh.

  The contract was awarded to the joint venture of local firm Albawani and Qatari contractor Urbacon Trading & Contracting.

  The joint venture will develop assets including:

  • The Aman Wadi Safar hotel and residences
  • A Six Senses hotel
  • A Chedi hotel and residences
  • A Faena hotel and residences
  • The Royal Diriyah Equestrian & Polo Club (excluding enabling works)
  • The North and South Fairways retail facilities and a mosque
  • The Grove retail facilities, mosque and clinics

  Last week, MEED exclusively reported that Diriyah Company was preparing to award the contract.

  Wadi Safar is one of the original projects announced by Diriyah Company as part of the Diriyah project.

  It is a mixed-use development featuring residential buildings, farm plots, hotels, branded hotel villas, a golf course, an equestrian and polo club, and other leisure and entertainment facilities.

  In May, the president of Diriyah Company said he expects the company to award contracts worth SR30bn-SR35bn ($8bn-$9bn) this year for its Diriyah project.

  “We have awarded about SR53bn-worth of contract awards so far, and this year we will award about SR30bn-SR35bn of contracts to achieve our targets,” Mohammad Saad, Diriyah Company president, told the MEED Saudi Giga Projects event in Riyadh.

  Regarding the project delivery challenges facing most gigaprojects, Saad said: “Diriyah has devised a superblock strategy where we combine assets for a particular development, and we have seen a positive response from contractors.”

  Earlier in July, Diriyah Company awarded a construction contract valued at over $2bn to the joint venture of El-Seif Engineering Contracting and Beijing-based China State Construction Engineering Corporation to construct the Northern District of the Diriyah development.

  In a statement, Diriyah Company said that construction work is due to start in the third quarter of this year.

  The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it spans 14 square kilometres and combines 300 years of history, culture and heritage with hospitality facilities.

  Once complete, Diriyah will have the capacity to house 100,000 residents and visitors.

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  Yasir Iqbal
• 
  Chinese-Omani team plans 10GW factory

  Administrator

  24 July 2024

  Chinese solar photovoltaic (PV) company Q-Sun has signed an agreement with Oman-based Barakat Investment for the joint development of a solar module factory with a capacity of 10GW in Oman.

  The planned manufacturing facility will have 8GW of PV manufacturing capacity and 2GW of PV cell production capacity, according to media reports citing Q-Sun.

  The project demonstrates “our commitment to introducing cutting-edge technology, supporting the goals of Vision 2040 with concrete actions, and promoting economic growth through job creation and technological advancement”, said Ahmed Bin Saudi Al-Salmi, chief executive of Barakat Investment.

  MEED understands the planned facility will cover both tunnel oxide passivated contact (TOPCon) and heterojunction (HJT) solar panels.

  As of 2023, solar power installed capacity accounted for an estimated 5.5% of Oman’s total installed power generation capacity of approximately 12,600MW. The sultanate aims to increase this ratio six-fold by 2030.

  The state offtaker, Nama Power & Water Procurement Company (PWP), said it plans to procure 1.5GW of renewable energy capacity by 2027, in addition to the 1,000MW of solar PV capacity under construction and a 500MW plant that is operational. 

  The announcement to build a new solar PV factory in Oman comes on the heels of fellow GCC member state, Saudi Arabia, signing three new agreements to localise the manufacturing and assembly of equipment and components needed for solar and wind power projects.

  Three Saudi plants

  Renewable Energy Localisation Company (RELC) – a fully owned Public Investment Fund (PIF) company – entered into three agreements with Chinese-headquartered companies, the sovereign wealth fund announced on 16 July.

  The first joint venture (JV) comprises China-headquartered wind power technology company Envision Energy and Saudi firm Vision Industries. The new company plans to manufacture and assemble wind turbine components including blades with an estimated annual generation capacity of 4GW. Under this agreement, RELC will hold 40% of the JV, with Envision holding 50% and Vision Industries holding 10%.

  The second JV features China-based solar PV supplier Jinko Solar and Vision Industries. The JV entails localising the manufacture of PV cells and modules for high-efficiency solar generation. Under the agreement, which projects annual production of 10GW in generation capacity, RELC will hold 40% of the JV, with Jinko Solar holding 40% and Vision Industries holding 20%.

  The final JV was formed by Lumetech, a subsidiary of China’s TCL Zhonghuan Renewable Energy, and Vision Industries. This deal will localise the production of solar PV ingots and wafers with annual production sufficient to generate 20GW of power. Under this agreement, RELC will hold 40% of the JV, with Lumetech holding 40% and Vision Industries having 20%.

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  Jennifer Aguinaldo