Meed | Red Sea awards Amaala utility package

Red Sea awards Amaala utility package

11 September 2023

Red Sea Global has awarded a team comprising France’s EDF and UAE-based Masdar a contract to develop and operate a multi-utilities infrastructure for the 4,155 square-kilometre Amaala tourism scheme on Saudi Arabia’s Red Sea coast.

MEED understands the scope of the contract includes a 250MW solar power plant and 700 megawatt-hour (MWh) battery energy storage system.

The off-grid renewable energy system will enable 24-by-7 power generation, Red Sea Global said.

The work scope includes a seawater reverse osmosis (SWRO) plant with a peak capacity of 37,000 cubic metres a day (cm/d) as well as a sewage treatment plant. Both will be powered by renewable energy.

Amaala issued the tender for the contract in October 2021. It will be developed using a public-private partnership (PPP) model.

In February 2022, Amaala appointed Austria-headquartered ILF Consulting Engineers as technical adviser for the multi-utilities project.

Concession agreement

The developer consortium will be responsible for the “development, financing, engineering, procurement, construction and installation, testing and commissioning, insurance, ownership, operation and maintenance, and transfer of each of the infrastructure systems under a 25-year concession agreement”.

Each infrastructure system will be transferred to Amaala at the end of the concession term.

Owned by Saudi Arabia’s sovereign vehicle, the Public Investment Fund, Amaala includes three communities – Triple Bay, the Coastal Development and the Island – each consisting of several residential, hospitality and retail components.

Construction works on phase one of Triple Bay on the shores of the Red Sea have started.

The scheme is part of the Amaala Tourism Destination Development project.

Amaala previously planned the project. In October 2022, Amaala merged with The Red Sea Development Company to form a new company called Red Sea Global, which is now implementing the project.

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Jennifer Aguinaldo