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Jubail 4 and 6 bidders get more time

26 April 2024

Prequalified bidders received a two-month extension for the preparation of proposals for a contract to develop an independent water project (IWP) in Jubail, Saudi Arabia.

Saudi Water Partnership Company (SWPC) issued the request for proposals (RFP) for the Jubail 4 and 6 IWP in January this year, four months after it qualified nine individual companies and consortiums that can bid for the contract.

Located in Jubail in Saudi Arabia's eastern province, the plants will be able to treat 600,000 cubic metres a day (cm/d) of seawater using reverse osmosis technology.

MEED understands the client now expects to receive bids for the contract by 30 June instead of 30 April.

The following utility developers and investors qualified to bid for the contract: 

  • Abu Dhabi National Energy Company (Taqa)
  • Acciona (Spain)
  • Acwa Power (local)
  • Ajlan & Bros (local) / Rawafid Industrial Company (local)
  • Al-Jomaih Energy Water Company (local)  / Sogex Oman Company (local) 
  • GS Inima (Spain/South Korea)
  • International Power (Engie, France)
  • Marubeni Corporation (Japan)
  • Power & Water Utility Company for Jubail & Yanbu (Marafiq, local)

Thirty-five companies, including 16 Saudi-based firms, previously expressed interest in the project. 

The desalination plant will be located 18 kilometres south of Jubail Industrial City, adjacent to four existing desalination units – Jubail phase one, Jubail phase two, and the Jubail 3A and 3B IWP facilities.

As with the previous seawater reverse osmosis (SWRO) IWP contracts already awarded in the kingdom, the successful bidder, through a project company, will develop the project and sell the entire capacity and output to SWPC under a 25-year water-purchase agreement (WPA).

A credit support agreement from the government of Saudi Arabia backs SWPC’s obligations under the WPA.

SWPC’s transaction advisory team for the project comprises Netherlands-headquartered KPMG Professional Services as lead and financial adviser, UK-based Eversheds Sutherland as legal adviser and Canada’s WSP as technical adviser.

It also appointed UAE-based Future Water & Power Consulting to assist with the project tender and in finalising the site studies required for the bid.

SWPC has awarded the contracts for six IWP projects in Saudi Arabia – Rabigh 3, Shuqaiq 3, Yanbu 4 (Ar-Rayis 1), Jubail 3A, Jubail 3B and Rabigh 4. A seventh contract for developing the Shuaibah 3 SWRO plan was also directly negotiated and awarded in 2022.

The seven IWP schemes have a total combined capacity of 3.3 million cm/d.

Ras Mohaisen

SWPC recently received two bids for a contract to develop the Ras Mohaisen IWP scheme.

The bidders are Spain’s Acciona and a team comprising the local firms Acwa Power, Haji Abdullah Alireza & Partners Company and AlKifah Holding.

The Ras Mohaisen IWP will have the capacity to treat 300,000 cubic metres of seawater a day (cm/d) using reverse osmosis technology.

It will also include storage tanks with a capacity of 600,000 cubic metres, equivalent to two operating days, and an electrical substation.

 

 

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Jennifer Aguinaldo

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