Taiba 2 and Qassim 2 reach $3.9bn financial close
12 July 2024
A utility developer team led by the local Al-Jomaih Energy & Water Company (Jenwa) has reached financial close for the contract to develop and operate the Taiba 2 and Qassim 2 independent power projects (IPPs) in Saudi Arabia.
According to Jenwa, the two projects have been financed through a combination of equity bridge financing and senior debt, secured by Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (Apicorp(, Saudi Investment Bank, Bank Al-Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank, for the approximate value of SR14.6bn ($3.9bn).
The Qassim 2 and Taiba 2 combined-cycle gas turbine (CCGT) plants will have a total combined capacity of 3,960MW.
The developer team, which includes France’s EDF and the local Buhur for Investment, signed a 25-year power-purchase agreement with the principal buyer, Saudi Power Procurement Company (SPPC), for the projects in November 2023.
The team subsequently appointed an EPC team, led by China Energy International Group, to work on the project.
On 24 June, Germany's Siemens Energy confirmed an order, worth a total of $1.5bn, to supply its HL-class gas turbines along with a 25-year maintenance contract for two Taiba 2 and Qassim 2 IPPs.
China Energy International Group awarded the contract to Siemens Energy.
According to Siemens Energy, the Taiba 2 and Qassim 2 power plants will be initially connected to the grid in simple cycle mode in 2026 and will be permanently operated as a combined cycle power plant one year later.
The new plants are expected to save up to 60% of carbon dioxide (CO2) emissions compared with oil-fueled power plants.
They will also be compatible with Saudi Arabia's energy strategy, which calls for the construction of CO2 capture and storage facilities in the medium term, to enable a carbon-neutral energy supply.
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
The second, TF-15-C2, will deliver stormwater links along Umm Suqeim Road to serve the Al-Barsha and Al-Quoz communities.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
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DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
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In 2025, the terminal handled over 5.3 million tonnes of cargo and nearly 85,000 car equivalent units of Ro-Ro imports.
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The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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Chinese firm wins Ceer automotive supplier park deal
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