Saudi Power Procurement Company (SPPC), the kingdom's principal buyer, has given prequalified bidders two more weeks to prepare and submit their proposals for contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants in Saudi Arabia with a total combined capacity of 7.2GW.

According to a source close to the project, the tender closing date has been extended from 31 July to 15 August.

The four independent power producer (IPP) projects, each with a generation capacity of 1,800MW, are:

• Remah 1
• Remah 2
• Al-Nairiyah 1
• Al-Nairiyah 2

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al-Nairiyah 1 and 2 will be in the Eastern Region.

MEED previously reported that the consortiums likely to bid for the four gas-fired IPP contracts include:

• Abu Dhabi National Energy Company (Taqa, UAE) / Jera (Japan) / Albawani (local)
• Acwa Power (local)
• Korea Electric Power Corporation (Kepco, South Korea) /  Saudi Electricity Company (SEC, local)

Except for the Taqa/Jera-led team, the latest lineup of potential bidders presents a major reshuffle from the team compositions MEED reported in March, following the project site visits. 

SPPC indicated that the four power plants are envisaged to operate using natural gas combined-cycle technology with a carbon capture unit readiness provision.

The four power generation facilities will be developed using a build-own-operate (BOO) model. 

SPPC’s transaction advisory team for the Remah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

SPPC has also started preparing for the next batch of gas-fired IPPs that it plans to tender, as MEED reported.

The Saudi principal buyer is understood to have received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs. The Al-Rais IPP will have a capacity of 2,400MW, while the Riyadh 16 IPP has a planned capacity of 3,600MW.

Awarded gas IPPs

SPPC awarded contracts to develop four gas-fired power generation IPP projects last year.

A consortium comprising Saudi Electricity Company and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

China’s Sepco 3 will undertake the engineering, procurement and construction contract for the two projects, while US-based GE will supply the CCGT for the power plants. 

A team comprising Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.

Each project will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.