Local firm bids low for Shoaiba desalination plant

4 October 2024

Jeddah-based Alfatah Water & Power is understood to have submitted the lowest bid for the contract to build the Shoaiba 6 seawater reverse osmosis (SWRO) plant on Saudi Arabia’s western coast.

Saudi Water Authority (SWA), the kingdom’s main producer of desalinated water, is undertaking the final bid evaluation for the contract, MEED previously reported.

The plant has a capacity of 545,000 cubic metres a day (cm/d).

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

VA Tech Wabag submitted the lower bid for Yanbu 5 and recently 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.

The 30-year contract that Wabag won covers the design, engineering, supply, construction and commissioning of the desalination plant.

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.

According to sources familiar with the project, the following companies submitted proposals for the Ras Al-Khair SWRO contract:

  • Abengoa (Spain) / Civil Works Company (local)
  • VA Tech Wabag (India)
  • Saudi Services for Electro Mechanic Works (SSEM, local)
  • Mutlaq Al-Ghowairi Contracting (local)
  • Al-Rashid Trading & Contracting (local)

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
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  • Region’s leaders turn to inorganic growth

    4 November 2024

    Commentary
    Colin Foreman
    Editor

    Read the November issue of MEED Business Review

    The world is at a crossroads, marked by profound shifts across geopolitics, economics and technology. The Middle East, particularly the six GCC states, has positioned itself at the heart of these changes. The region’s strategic location between East and West, and its connection to both developed economies and the rapidly growing Global South, enhances its role as a bridge in the shifting global order. 

    As a leading oil and gas producer, the GCC is central to the energy transition. Its leaders are actively pursuing opportunities in artificial intelligence and automation to diversify their economies and prepare for a post-oil future.

    Adapting to these rapid changes requires more than just organic growth. The region’s leaders have turned to inorganic growth by acquiring established firms, technologies and capabilities. This approach has been enabled by strong economic recovery following the Covid-19 pandemic and revenues from higher oil prices.

    Saudi Arabia’s Public Investment Fund (PIF) is the most high-profile exponent of this strategy. The PIF has not only launched new companies to drive domestic development, but also acquired stakes in a diverse range of local and international businesses. Its investments span industries as varied as steel production, sports and video game development, all aligned with the broader goal of transforming Saudi Arabia into a diversified, leading global economy.

    The UAE is also making acquisitions. Over the past decade, it has consolidated key domestic industries and shifted its focus to strategic acquisitions that advance its economic agenda. Sovereign wealth funds and state-backed enterprises have pursued opportunities across sectors, seeking financial returns and the know-how to drive innovation and diversification at home.

    Completing these deals during moments of change will enhance the region’s position as a key global player.


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    > SEPTEMBER 2024 CONTRACTS: Region records 55% increase in value of deals signed

    > ECONOMIC DATA: Data drives regional projects

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    Colin Foreman