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Nuclear project may feature in Trump’s Riyadh visit

10 March 2025

 

Saudi Arabia's civilian nuclear power plant project may feature in the planned visit of US President Donald Trump to Riyadh within the next six weeks, industry sources tell MEED.

"I think the main agenda will be Russia, Ukraine and Middle East peace, but energy cooperation – such as the nuclear industry – could also be discussed," one source says.

Trump has said he will likely visit Saudi Arabia on his first overseas trip within the next month and a half, as he did during his first term of office.

Trump's first overseas trip of his first term was to Riyadh in 2017, to announce Saudi investments estimated at the time to be worth $350bn.

His next visit is contingent upon the signing of deals with Riyadh for investments of more than $1tn in the US economy, according to reports.

"I doubt whether the [Saudi] nuclear programme will be on the agenda, but one never knows," says another source familiar with Saudi Arabia's nuclear power plant project. "[Trump] may use the nuclear [project] as a deviation from the main agenda of the talks."

Saudi Arabia is hosting talks between top US and Ukrainian diplomats this week regarding the potential of peace between Moscow and Kyiv. 

Duwaiheen nuclear power plant

Saudi Arabia restarted procurement proceedings for its first large-scale nuclear power plant project in Duwaiheen in 2022.

The bid deadline for the main contract to build the project, which will be located close to the border with Qatar, has been extended several times.

The ongoing conflict between Israel, Gaza and other neighbouring countries appears to have contributed to the extended procurement timeline of the Duwaiheen nuclear plant project.

It is understood that Riyadh is using its nuclear power plant project, along with its plan to enrich uranium sources as part of its industrial strategy, as a bargaining chip with the US government. The White House is pushing for the normalisation of relations between Israel and Saudi Arabia and is opposed to uranium enrichment.

A month before the latest conflict between Israel and Hamas started, it was reported that senior Palestinian officials were in Riyadh for talks with senior Saudi and US officials. According to a BBC report in September 2023, the Palestinians were negotiating for hundreds of millions of dollars and more control of land in the occupied West Bank in the event of a three-way deal between Israel, Saudi Arabia and the US.

On 14 October 2023, Saudi Arabia suspended the talks on potentially normalising ties with Israel, which it has never officially recognised as an independent state.

Westinghouse-Kepco dispute resolution

In January, US-headquartered Westinghouse Electric Company resolved its long-running intellectual property dispute with Korea Electric Power Corporation (Kepco) and Korea Hydro & Nuclear Power Company (KHNP).

Westinghouse initiated legal action in the US in 2022 to block Kepco and KHNP from distributing without permission nuclear technology for which it claimed ownership rights.

Westinghouse’s argument was based on the claim that the Korean nuclear reactor model APR1400 relied on the firm's original design and technology, and that the two South Korean companies should be responsible for any damages resulting from the export of APR1400-modelled nuclear reactors.

In response, KHNP filed countersuits in the US to compel Westinghouse to withdraw the case, while simultaneously seeking an out-of-court resolution.

KHNP asserted that it possessed the necessary licences to use the technology, enabling the firm to export it without Westinghouse’s permission. KHNP argued that it should not be held accountable for royalty payments.

Both Kepco and Westinghouse expressed interest in developing Saudi Arabia’s first large-scale nuclear power plant in Duwaiheen, although Westinghouse has since dropped out of the race, according to sources.

READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

> GULF PROJECTS INDEX: Gulf hits six-month growth streak
To see previous issues of MEED Business Review, please click here
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Jennifer Aguinaldo

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  • Abu Dhabi to award Khazna solar IPP contract

    11 March 2025

    Abu Dhabi state utilityand offtaker Emirates Water & Electricity Company (Ewec) is expected to award the contract to develop the emirate’s fourth utility-scale solar photovoltaic (PV) project in the second quarter of the year.

    French utility developer and investor Engie submitted the lowest bid for a contract to develop the Al-Khazna solar independent power producer (IPP) project, also known as PV4, in October last year.

    The solar power PV plant will have an installed capacity of 1,500MW.

    MEED reported in October that  Engie offered a levelised cost of electricity (LCOE) of AED fils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by roughly 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AED fils 5.54126/kWh.

    A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AED fils 5.86311/kWh. 

    Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) opened the bids on 30 October.

    A transaction advisory team comprising UK-headquartered Ashurst and Alderbrook Finance and Norwegian engineering services firm DNV is advising Ewec on the 1,500MW Al-Khazna IPP scheme.

    Solar energy is integral to achieving Abu Dhabi’s target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.

    In April last year, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.

    In 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV, which was inaugurated last year.

    In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.

    Like the first three schemes, the Khazna solar PV project will involve the development, financing, construction, operation, maintenance and ownership of the plant and associated infrastructure.

    The successful developer or developer consortium will own up to 40% of the entity, while the Abu Dhabi government will retain the remaining equity.

    The developer will enter into a long-term power-purchase agreement with Ewec.

    Once fully operational, the Khazna solar PV, along with Noor Abu Dhabi, the Al-Dhafra solar PV and Al-Ajban solar PV, will raise Ewec’s total installed solar PV capacity to 5.5GW and collectively reduce carbon dioxide emissions by more than 8.2 million metric tonnes a year by 2027. 

    In January, Ewec issued the request for proposals for a contract to develop the emirate’s fifth solar PV in Al-Zarraf, with a bid deadline set for Q2 2025.

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  • Saudi water contracts set another annual record

    11 March 2025

     

    Stakeholders in Saudi Arabia's water sector awarded contracts totalling $14.9bn in 2024, exceeding by 3% the previous year's figure, which set a record high.

    This is a significant milestone considering that the annual value of contracts awarded in the kingdom's water sector averaged only about $6.5bn between 2018 and 2022.

    A major outlier, the $4.7bn Trojena Valley dams in Neom, boosted the total value of contracts awarded in 2024. It also allowed the gigaproject developer to outperform the usual top clients, which include National Water Company (NWC) and Saudi Water Authority (SWA), formerly Saline Water Conversion Corporation (SWCC). While NWC awarded contracts valued at approximately $4bn during the year, SWA made contract awards of $3.3bn.

    The sustained capital spending in the sector aligns with Saudi Arabia's 2030 National Water Strategy, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of the national urban supply, to reduce reliance on non-renewable ground sources.

    The kingdom's main desalinator, boasting the world's largest water desalination fleet, SWA tendered and awarded several major water desalination contracts in 2024, despite ongoing restructuring in the water sector, which entailed transferring ownership of SWCC's existing desalination plants to sovereign wealth vehicle the Public Investment Fund.

    During the year, SWA awarded the engineering, procurement and construction contracts for the Jubail and Ras Al-Khair seawater reverse osmosis (SWRO) plants, respectively worth $677m and $625m.

    It also tendered the contracts for two other SWRO schemes – Yanbu 5, which was subsequently cancelled, and Shoaiba 6, which was similarly cancelled but was retendered before the end of 2024.

    In addition to these, SWA awarded the contracts for several storage or reservoir projects, including the Al-Moghamas phase two strategic storage tank project and the Riyadh Southern Ring water transmission system.

    NWC awarded $2.5bn-worth of contracts for the first phase of its long-term operation and maintenance (LTOM) programme. The initial phase comprises eight packages covering the treatment of 4.2 million cubic metres a day (cm/d) of sewage water for the next 15 years.

    The average cost of a cubic metre of treated sewage is SR0.5, which is less than $c15, including capital and operational expenditure and electricity costs.

    Local contracting firm Alkhorayef Water & Power Technologies won three contracts with a combined capacity of 2.04 million cm/d, nearly half of the awarded total. These three contracts are worth more than SR5.53bn ($1.47bn).

    A consortium of France's Suez and the local Al-Awael Modern Contracting Group with its affiliate Civil Works Company (CWC) won two packages worth a combined SR1.84bn. A consortium comprising France's Veolia and Awael-CWC won a single package worth SR1.26bn. Local utility developer Miahona won one package worth SR392m.

    Public-private partnerships

    Shifting from awarding several public-private partnership (PPP) contracts a year, Saudi Water Partnership Company (SPWC) awarded a single contract in 2024 – the $400m Al-Haer independent sewage treatment plant (ISTP) project.

    A developer team comprising the local Miahona Company and Belgium's Besix won the contract in March 2024, offering to develop the project for SR1.9407 ($c51.73) a cubic metre. Power & Water Utility Company for Jubail & Yanbu (Marafiq) subsequently joined the consortium.

    The project involves the development of a water treatment plant with a capacity of 200,000 cm/d.

    Despite widespread expectations to the contrary, SWPC did not manage to award contracts in 2024 for two of its much-anticipated independent water projects (IWPs) and one independent water transmission pipeline (IWTP) scheme.

    In April 2024, SWPC received two bids for a contract to develop the 300,000 cm/d Ras Mohaisen seawater reverse osmosis IWP. Spain’s Acciona and a team led by Saudi utility developer Acwa Power submitted bids for the contract.

    SWPC eventually selected the Acwa Power-led team as the preferred bidder, but the signing of the water-purchase agreement only took place in February 2025.

    In September 2024, SWPC received a single bid from a team comprising Acwa Power, Haji Abdullah Alireza & Company (Haaco) and AlSharif Contracting & Commercial Development for the Jubail 4 and 6 IWP located in the Eastern Region.

    Although the bid evaluation was completed in December, the offtake agreement for the 600,000 cm/d plant has yet to be signed.

    Despite several delays last year, projects activity at the start of 2025 suggests the possibility of a return to the higher levels seen by SWPC in previous years.

    In January, it tendered the contracts to develop and operate two ISTP projects in the kingdom. Located in Mecca, the first scheme, the Arana ISTP, will have an initial capacity of 250,000 cm/d, expandable to 500,000 cm/d.

    The second scheme, the Hadda ISTP, will also be located in Mecca and will have an initial capacity of 100,000 cm/d, expandable to 250,000 cm/d.  

    The scopes of work include treated sewage effluent (TSE) re-use systems consisting of transmission pipelines and TSE tanks.

    Expected to be operational by 2028, both projects will be implemented on a 25-year build, own, operate and transfer model. SWPC expects to receive bids for the contracts by 5 May.

    Earlier in March 2025, SWPC awarded the $2.2bn contract to develop the Jubail-Buraydah IWTP project to a team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

    The 587-kilometre pipeline will be able to transmit 650,000 cm/d of water and will be developed at a levelised cost of SR3.59468 a cubic metre.

    2025 outlook

    Last year, NWC, which provides water distribution, sewage collection and wastewater treatment services throughout Saudi Arabia, sought interest for the second phase of its LTOM programme, which resembles a build-operate-transfer structure and risk allocation. This phase is divided into 10 packages encompassing 116 existing sewage treatment plants.

    There is an expectation that SWA, along with Water Transmission Company (WTCO), will continue to engage the market with new tenders.

    In December, WTCO initiated the prequalification process for the Ras Mohaisen-Baha-Mecca independent water transmission system project.

    It is also continuing the bid evaluation process for a contract to build phase four of the Al-Shuqaiq to Jizan water transmission system. Estimated to be worth $2.9bn, the project is split into four packages that include pipeline supply, water transmission pipelines, pumping stations and strategic reservoirs.

    Having prequalified companies that can bid separately for seven ISTPs and five water projects in November last year, there is an expectation that SWPC will issue the first tenders for this project in 2025.

    It prequalified 53 companies to bid for the seven ISTPs, which have a total combined capacity of 700,000 cm/d, and 41 to bid for the five IWPs, which have a total combined capacity of 1.7 million cm/d. The tenders for these projects are expected to be issued over two years, until 2026. 

    Project finance

    With so many independent water contracts under execution and a robust pipeline of upcoming work, the liquidity of the mostly local banks that are providing project finance could become an issue, experts say.

    “Banks are facing liquidity issues in terms of debt-versus-loan ratios,” says an executive with a Saudi Arabia-headquartered infrastructure investment group.

    He adds that since some Saudi banks have relatively low US dollar reserves, the market will likely see a mix of Saudi riyal and US dollar financing being offered for new projects.

    “Lending rates are already up from previous projects such as the Jubail 4 and 6 IWP and the Jubail-Buraydah IWTP. It will be interesting to see how bids develop this year,” he tells MEED.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13467032/main0500.jpg
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  • UAE and Saudi markets remain region’s least risky for construction

    11 March 2025

    The UAE and Saudi Arabia remain the two markets in the region with the least risk, according to GlobalData’s latest Construction Risk Index report. 

    The UAE, with a risk score of 25.30, is ranked as A2, which indicates a low risk environment. The market in 2025 is supported by a buoyant property market with offplan sales driving the launch of new projects, as well as ongoing government infrastructure spending and a strong pipeline of oil and gas projects.

    Saudi Arabia, with a risk score of 37.38, is ranked as B1, indicating a moderate risk environment. The country's construction industry continues to deliver projects for Vision 2030, and while this is positive in terms of workload, the market is expected to face challenges in 2025 due to the government's plan to delay the implementation of scheduled projects.

    The reprioritisation is still ongoing, which has impacted confidence and could have negative consequences for companies working on projects that are scaled back or slowed down.

    Other GCC countries, including Kuwait, Qatar, Bahrain, and Oman, also face varying degrees of risk. Qatar's construction industry, with a risk score of 39.03, is expected to recover in 2025, supported by investment in Liquefied Natural Gas (LNG) and renewable energy. However, a declining trend in new investment in the non-residential building sector continues to weigh on the industry.

    With a risk score of 63.50, Egypt's construction industry is expected to face high risk due to political, economic, market, and financial issues. The country's construction industry is ranked as C2, indicating a high-risk environment.

    Globally, the construction risk outlook in Q4 2025 continues to be impacted by economic headwinds. The global average score declined marginally to 49.13 from 49.65 in Q3 2024. The Middle East and North Africa region's average risk score is 53.25, indicating a higher risk environment compared to the global average.

    With a risk score of 69.00, Iraq's construction industry continues to face persistent security challenges, regional geopolitical tensions, and political instability. The country's construction industry is ranked as C2, indicating a high-risk environment. Despite investments in reconstruction and infrastructure projects, construction remains hindered by weak governance.

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  • Mubadala divests stake in UK’s Calisen

    11 March 2025

    Abu Dhabi sovereign wealth fund Mubadala has completed the sale of its indirect stake in Calisen, a UK-based provider of smart meters and small-scale energy transition infrastructure assets.

    The sale marks the end of a four-year investment cycle during which Mubadala, alongside partners, worked closely with Calisen to deliver strong financial and commercial performance, the firm said.

    Mubadala's investment partners include US Blackrock-backed Global Infrastructure Partners (GIP) and the infrastructure business at Goldman Sachs Alternatives

    Mubadala has supported Calisen’s expansion capabilities to "unlock new growth opportunities including electric vehicle (EV) charging, the electrification of heating, solar, and battery solutions, deepening Calisen’s role in the UK's energy transition".

    A key milestone in this journey was Calisen's 2023 acquisition of MapleCo, a UK smart metering company owned by Equitix, which is now part of the shareholder group.

     With an installed base of 16 million meters, the company is well-positioned to capitalise on market trends underpinned by the ongoing energy transition as the UK advances in its journey to achieving net-zero emissions by 2050.

    Saed Arar, Mubadala head of infrastructure, said its successful investment in Calisen comes from selecting the right partners and business to support, and implementing active management initiatives "that were accretive to returns, de-risked the investment, and positioned Calisen well for an attractive exit".

    "This transaction aligns with our approach of capturing value through well-timed and strategic exits, while ensuring that Calisen is well-positioned for its next phase of growth," said Arar.

    The sale value was not disclosed.

    Photo credit: Mubadala

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  • Ewec seeks firms for 3.3GW Al-Nouf power plant

    11 March 2025

     

    State utility and offtaker Emirates Water & Electricity Company (Ewec) has issued a request for statements of qualifications (SOQs) from firms for a contract to develop a new combined-cycle gas turbine (CCGT) power generation plant in Abu Dhabi.

    The CCGT plant will be located at the Al-Nouf complex, 30 kilometres southwest of the city of Abu Dhabi.

    The Al-Nouf 1 independent power project (IPP) will have a net generation capacity of approximately 3,300MW.

    MEED understands that Ewec is in discussions with original equipment manufacturers regarding support for the prospective bidders in terms of the procurement process for the necessary gas turbines.

    Ewec expects interested developers to submit their SOQs by 20 March and aims to issue the request for proposals before the end of March.

    The estimated bid submission deadline will be in late August.

    The Al-Nouf 1 CCGT plant is expected to reach commercial operations by June 2029.

    MEED reported in September last year that Abu Dhabi plans to procure an estimated 5,000MW of gas-fired power plant capacity, mainly to support the UAE’s artificial intelligence (AI) strategy.

    Ewec is understood to be working with both Abu Dhabi National Energy Company (Taqa) and Abu Dhabi Future Energy Company (Masdar) to implement the power plant projects that will support the UAE government’s AI strategy.

    Taqa is conducting final negotiations for a contract to build an open-cycle gas turbine (OCGT) power generation plant in Abu Dhabi's Al-Dhafra region, MEED recently reported.

    The Al-Dhafra OCGT plant project is being tendered on a fast-track basis and is expected to have an installed capacity of 1,000MW-1,100MW.

    Engineering, procurement and construction contractors are understood to have submitted their proposals for the contract in September last year. 

    In January, Ewec and Masdar announced a project to build a solar photovoltaic (PV) and battery energy storage system (bess) project that will enable the round-the-clock supply of 1GW of solar power. It will comprise a 5GW solar PV plant and 19 gigawatt-hour bess plant.

    Taweelah C

    Ewec received a single proposal for a contract to develop the Taweelah C IPP project in late February.   

    The Taweelah C IPP will have a generation capacity of up to 2,500MW and is expected to reach commercial operations in the third quarter of 2028.

    Industry sources suggest that UAE-based Etihad Water & Electricity (Ethad WE) submitted the lone bid for the contract.

    The Taweelah C IPP is the first gas-fired power plant project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 IPP.

    Taqa fiscal standing

    Taqa completed its full 2024 fiscal year with a net income of AED7.1bn ($1.9bn), on the back of revenues that reached AED55.2bn.

    This net income was only 1.5% higher than the year before, excluding one-off items worth AED10.8bn related to the acquisition of a 5% stake in Adnoc Gas and a AED1.1bn deferred tax charge due to the introduction of corporate tax in the UAE.

    The company’s earnings before interest, taxes, depreciation and amortisation rose 5.9%, to AED21.4bn, in 2024. This declined by 31% compared to the year before, if the AED10.8bn acquisition of a 5% stake in Adnoc Gas is considered.

    READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF

    Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025

    Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:

    > GULF PROJECTS INDEX: Gulf hits six-month growth streak
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/13472745/main.jpg
    Jennifer Aguinaldo