Related Articles

• 
  Saudi Arabia evaluates Mukaab raft bids

  14 November 2024

  

   

  Saudi Arabia’s New Murabba Development Company has started evaluating bids it received on 3 November for a contract to undertake the raft concrete works beneath the wadi podiums and Mukaab at the New Murabba downtown development in Riyadh.

  MEED understands that the developer has received at least two bids for the contract.

  A joint venture of Turkiye's Nurol and the local Saudi Constructioneers (Saudico) and AlSaad General Contracting, and another joint venture comprising Lebanon's Consolidated Contractors Company (CCC) and Urbacon Trading & Contracting Company (UCC) are understood to have submitted bids for the contract.

  Sources suggest joint ventures comprising Chinese and local contractors are also likely to have submitted proposals for the contract.

  New Murabba Development Company issued the tender notice in August, with contractors initially given until 27 October to submit their commercial bids.

  The raft construction package is expected to be worth SR3.8bn-SR4.4bn ($1bn-$1.1bn).

  In October, MEED reported that New Murabba had achieved significant construction progress on its Mukaab development.

  According to an official statement released on 15 October: "Excavation works at the Mukaab and surrounding podium sites have reached 86% completion, with over 10 million cubic metres of earth moved."

  Beijing-headquartered China Harbour Engineering Company is carrying out the excavation works.

  The foundation works for the Mukaab are being carried out by UAE-headquartered HSSG Foundation Contracting. 

  The Mukaab is a Najdi-inspired landmark that will be one of the largest buildings in the world. It will be 400 metres high, 400 metres wide and 400 metres long. Internally, it will have a tower on top of a spiral base and a structure featuring 2 million square metres (sq m) of floor space designated for hospitality. It will feature commercial spaces, cultural and tourist attractions, residential and hotel units, as well as recreational facilities.

  The New Murabba development is divided into three sections: infrastructure, buildings and the Mukaab.

  Contractors are expected to form joint ventures or consortiums to deliver the packages.

  The estimated contract award timelines for each package are: 

  • Package 1: Logistics area construction and maintenance – Q4 2024
  • Package 2: Piling – awarded in April 2024
  • Package 3: Raft foundation – Q4 2024
  • Package 4: Mukaab core – Q2 2025
  • Package 5: Dome technology – Q3 2028
  • Package 6: Wadi podiums – Q3 2025

  MEED understands that New Murabba Development Company plans to develop the project infrastructure on a public-private partnership basis.

  Downtown destination

  The New Murabba destination will total more than 25 million sq m of floor area and feature more than 104,000 residential units, 9,000 hotel rooms and over 980,000 sq m of retail space.

  The scheme will include 1.4 million sq m of office space, 620,000 sq m of leisure facilities and 1.8 million sq m of space dedicated to community facilities.

  The project will be developed around the concept of sustainability and will include green spaces and walking and cycling paths to promote healthy, active lifestyles and community activities.

  The living, working and entertainment facilities will be created around a 15-minute walking radius. The area will use an internal transport system and will be about a 20-minute drive from the airport.

  The downtown area will feature a museum; a technology and design university; an immersive, multipurpose theatre; and more than 80 entertainment and cultural venues.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12920673/main.jpg

  Jennifer Aguinaldo
• 
  Firms prepare Noor Midelt 2 and 3 bids

  14 November 2024

  

   

  Prequalified developers are preparing to submit their proposals for contracts to develop solar photovoltaic (PV) projects with associated battery energy storage systems (bess) in Morocco. 

  The Moroccan Agency for Sustainable Energy (Masen) extended the tender closing dates for the Noor Midelt 2 and Noor Midelt 3 solar PV and bess projects until late November.

  Masen prequalified the following firms that can bid for the Noor Midelt 2 solar independent power project (IPP) in July last year: 

  • Acwa Power (Saudi Arabia)
  • Cobra Servicios, Communicaciones y Energia / Cobra Instalaciones y Servicios (Spain)
  • EDF Renouvelables (France) / Abu Dhabi Future Energy Company (Masdar, UAE)
  • Enel Green Power (Italy) / Taqa Morocco (local)
  • Iberdrola Renovables (Spain) / Dongfang Electric (China) / Gaia Project (local)
  • International Power (Belgium) and Nareva (local)

  The Noor Midelt 2 solar IPP consists of a 400MW solar PV power plant with battery storage of two hours.

  It replaces a previous scheme that was expected to include thermal concentrated solar power and PV solar components, similar to Noor Midelt 1, which was previously awarded to a consortium of EDF and Masdar.

  Midelt 3

  The Noor Midelt 3 IPP scheme is expected to have a solar PV capacity of up to 400MW and a bess capacity not exceeding 400 megawatt-hours (MWh).       

  In December 2023, Masen prequalified eight groups to bid for the Noor Midelt 3 solar IPP contract. These are:

  • Abu Dhabi Future Energy Company (Masdar) (UAE) / Taqa Morocco (local)
  • Acciona (Spain) / Green of Africa (local)
  • Acwa Power (Saudi Arabia) / Nareva Holding (local)
  • Cobra (Spain) / Vinci Concessions (France)
  • EDF Renouvelables (France) / Mitsui & Co (Japan)  
  • Iberdrola (Spain)
  • Kahrabel (UAE) / GDF International (France)
  • SPIC Huanghe Hydropower Development (China) / Amea Power (UAE)

  The Noor Midelt 2 and 3 IPP projects will be implemented according to a 30-year power-purchase agreement between Masen as the offtaker and the project company that will be formed for the scheme. 

  In the case of participation by any international finance institutions, such as Germany’s KFW or the European Investment Bank, those banks’ procurement rules will be applied to the project, according to Masen.

  The solar and bess plants are expected to be built on a dedicated and available site that Masen will provide under a land lease or equivalent agreement.

  This suggests that common infrastructure such as the water supply, roads and telecommunications services will be shared, and will be constructed “to ensure overall consistency of the solar complex and optimise benefits from a simultaneous development of the infrastructure”.   

  US/India-based Synergy Consulting is the client's financial adviser for the projects.

  Clean energy target

  Morocco has set a target for 52% of its energy to be produced from clean energy sources by 2030, one of the most ambitious targets in the Middle East and North Africa region.

  Morocco aims to bring its renewable capacity to 10,000MW by 2030. Solar PV capacity is expected to comprise 4,500MW, with wind and hydroelectric comprising 4,200MW and 1,300MW, respectively.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12920645/main.jpg

  Jennifer Aguinaldo
• 
  Saudi Arabia receives Asir and Riyadh water bids

  14 November 2024

  

   

  Water Transmission & Technologies Company (WTTCO), Saudi Arabia's licensed desalinated water transmission system operator, has received bids for the contracts to build two water transmission pipelines in the kingdom.

  The first contract is for the construction of a water transmission system in Riyadh North Ring.

  The estimated $150m project entails the construction of a water pipeline, storage tanks and lifting stations, in addition to civil works and associated facilities.

  The second contract is for the construction, supply and implementation of pipes and strategic storage works for the Asir water transport system.

  The similarly-valued contract scope covers the construction of a 130-kilometre pipeline with diameters ranging from 20 to 52 inches, six iron tanks with capacities ranging from 2,300 cubic metres to 80,000 cubic metres, storage tanks and a pumping station.

  According to data first obtained by regional projects tracker MEED Projects, the companies that submitted separate bids for the two contracts include:

  • Mapa Insaat (Turkiye)
  • Al-Rashid Trading & Contracting (local)
  • Saudi Sdn Water and Energy (local)
  • Saudi Services for Electro Mechanic Works (local)
  • Al-Rawaf Trading & Contracting (local)
  • Sawaed General Contracting (local)
  • Mutlaq Damook Al-Ghowairi Contracting (local)
  • ESNAD Constructions Company (local)

  The client recently invited companies to express interest by 16 November for an upcoming tender to develop an independent water transmission system (IWTS) project in the kingdom.

  The Ras Mohaisen-Baha-Mecca IWTS will have a contracted transmission capacity of 515,000 cubic metres a day, and will extend approximately 300 kilometres.

  The pipeline will be part of the kingdom's Western Supply Group. 

  At least two more major water transmission pipeline projects in the kingdom are currently under bid. They are the Al-Shuqaiq-Jizan and Jubail-Riyadh water transmission systems.  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12920059/main.jpg

  Jennifer Aguinaldo
• 
  Saudi Water Authority to retender Shoaiba contract

  14 November 2024

  

   

  Saudi Water Authority (SWA), the kingdom’s main producer of desalinated water, is considering retendering a contract to build a new water desalination plant utilising reverse osmosis technology on Saudi Arabia’s western coast.

  The Shoaiba 6 seawater reverse osmosis (SWRO) plant is expected to have the capacity to produce 545,000 cubic metres a day (cm/d) of potable water.

  According to industry sources, discussions are being held about retendering the contract, although there is no firm indication of when a new request for proposals will be issued.

  MEED previously reported that Jeddah-based Alfatah Water & Power submitted the lowest bid for the contract.

  SWA received bids for the contract on 19 May, several days after it received bids for another desalination plant project, the Yanbu 5 SWRO plant.

  VA Tech Wabag submitted the lowest bid for Yanbu 5 and has confirmed that it has won the $317m contract to build the plant. 

  The Yanbu 5 plant will have the capacity to treat 300,000 cm/d of seawater.

  SWA – formerly Saline Water Conversion Company (SWCC) – has tendered two other projects.

  The Jubail and Ras Al-Khair SWRO projects will each have the capacity to treat 600,000 cm/d of seawater.

  MEED recently reported that Najran-based Emar Al-Janoub for Contracting (EJC) has won a contract to build the Ras Al-Khair SWRO plant.

  EJC offered SR2.346bn ($625.6m) to win the contract, seeing off competition from other bidders that included the local Civil Works Company and Saudi Services for Electro Mechanic Works, and the Saudi branch of India’s VA Tech Wabag. 

  SWA is procuring the four SWRO projects using an engineering, procurement and construction model, in contrast to the SWRO facilities being procured on a public-private partnership basis by state water offtaker Saudi Water Partnership Company.

  SWA is the world’s largest producer of desalinated water, with a capacity of at least 6.6 million cm/d. Plants utilising older and more energy-intensive techniques, such as multi-stage flash technology, account for the majority of the current capacity.

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  Jennifer Aguinaldo
• 
  Economic agenda stirs GCC energy transition

  14 November 2024

  Commentary
  Jennifer Aguinaldo
  Energy & technology editor

  The 2021 headline-grabbing 600MW Shuaibah solar photovoltaic (PV) project in Saudi Arabia is about to start operations, according to the majority owner, Saudi-listed Acwa Power.

  In 2020, a team led by Acwa Power offered a levelised cost of electricity (LCOE) of $cents1.04 a kilowatt-hour ($c/kWh) for the project, which broke the world record in terms of unsubsidised solar PV production cost. 

  It bested a record previously held by the 1,500MW Al-Dhafra solar PV independent power project in Abu Dhabi, which is being developed at an LCOE of $c1.32/kWh.

  Four years later, Saudi Arabia and the UAE have renewable energy installed capacities of about 4.1GW and 5.5GW, respectively.

  The pipeline of under-construction and planned solar and wind projects in both countries has a total combined capacity exceeding 100GW, in line with their energy diversification targets. Saudi Arabia plans to tentatively procure up to 20GW annually until 2030 while the UAE intends to procure 1.5GW a year until at least the middle of the next decade.

  Riyadh and Abu Dhabi's renewable energy capacity procurement strategies complement - though some analysts prefer to say are at odds with -  clear plans to build additional nuclear energy capacity in the UAE and massive gas-fired capacity in Saudi Arabia.

  The total planned generation capacity appears out of proportion even when considering the population growth projected for the two countries; their industrial expansion programmes; and their determination to become top global artificial intelligence players, which will require a significant increase in their data centre capacity.

  The electricity generation capacity buildout by Riyadh and Abu Dhabi can be better understood within the context of their overall energy transition strategies, however.

  Blessed with cheap fossil fuels underground and plenty of sunshine – and to some extent wind – above ground, the two Gulf states want to play both sides during the energy transition to ensure their economies continue to prosper post-peak oil.

  By overbuilding clean energy capacity, they can decarbonise their domestic economies, including the energy-intensive oil exploration and production and downstream industries, allowing them to be the 'last barrel standing'. This will also enable them to attract green downstream investments catering to export markets, and to export surplus green energy in the form of electrons, molecules like hydrogen and liquids such as ammonia.

  To execute these plans, sovereign funds and entities in both states have started to invest billions of dollars in renewable energy and other energy transition programmes and are encouraging foreign partners to do the same.

  For exports, they are capitalising mainly on existing relationships with their oil, gas and utilities clients in Asia and Europe, which have ambitious net-zero targets.

  The main potential stumbling block would be a snag in the supply of key raw materials that are required for renewable energy projects, such as nickel, copper and lithium, vital components in solar and wind turbines and batteries, and which neither country produces nor mines in a commercial quantity. 

  However, government-level talks with the largest suppliers of these materials are understood to be under way in the hope of easing any potential supply chain bottlenecks.

  

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/12918902/main0011.jpg

  Jennifer Aguinaldo