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Bid evaluation for Oxagon cooling continues

28 February 2024

The bid evaluation process is continuing for a contract to build a district cooling plant at Oxagon, the industrial cluster at Saudi Arabia’s SR1.9tn ($500bn) Neom development.

MEED initially reported on the planned project in August 2022. Companies invited to bid for the contract are understood to have submitted their proposals in August last year.

The project client is Neom’s energy, water and hydrogen subsidiary, Enowa. The district cooling plant will have a capacity of 25,000 refrigeration tonnes (RT).

It will be built on a 3,000 square-metre land area and contain compression chillers and roof-mounted cooling towers, with a balance of mechanical and electrical items.

It will be linked to a district cooling network, which will be built separately by other contractors.

Enowa plans to procure up to nine district cooling plants, MEED previously reported. 

The planned district cooling plants, including three with a heating component, will be tendered between the first quarter of this year and early next year.

The plants will be located in the southern and central areas of the Neom development and at the airport.

They have varying operational dates, with the first expected to come online this year and the last in the second half of 2027.

The Line district cooling

Bids are due in March for a contract to develop a district cooling plant catering to The Line at Neom.

According to sources familiar with the project, at least two consortiums are expected to bid for the contract, which is being procured using a public-private partnership (PPP) model.

The consortiums comprise local and regional district cooling companies and international utility developers.

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Jennifer Aguinaldo

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