Riyadh to award 7.2GW projects by September
5 February 2024

Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), is expected to award the contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants with a combined total capacity of 7.2GW by September this year.
The principal buyer also expects the projects to reach financial close by 31 December, according to industry sources.
Related read: Utility projects stage strong start to 2024
Each of the four independent power producer (IPP) projects will have a power generation capacity of 1,800MW.
The projects are:
- Remah 1
- Remah 2
- Al Nairiyah 1
- Al Nairiyah 2
Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al Nairiyah 1 and 2 will be in the Eastern Region.
SPPC issued the request for proposals to prequalified bidders on 31 January. It expects to receive proposals for the contracts by 30 June.
The companies that have been prequalified to bid for the contracts to develop the Remah and Nairiyah IPP projects are:
- Abu Dhabi National Energy Company (Taqa) / Jera (Japan)
- Ajlan Brothers (local) / China Power International Holding (China)
- China Gezhouba Overseas Investment Company (China)
- Kahrabel / Engie (UAE/France)
- EDF (France)
- International Company for Water & Power Projects (Acwa Power, local)
- General Electric Company (US)
- Gulf Energy Development Public Company
- Gulf Investment Corporation
- Jomaih Energy & Water Company (AEW, local) )
- Korea Electric Power Corporation (Kepco, South Korea)
- Marubeni Corporation (Japan)
- Mitsubishi Power
- Nebras Power (Qatar)
- Power & Water Utility Company for Jubail & Yanbu (Marafiq)
- Samsung C&T Corporation (South Korea)
- Saudi Electricity Company (local)
- Siemens Energy (Germany)
- Sojitz Corporation (Japan)
- Summit Global Power
- The Kansai Electric Power Company (Japan)
The four power generation facilities will be developed using a build, own and operate (BOO) model.
SPPC indicated that the four power plants are envisaged to operate using natural gas combined-cycle technology with provision for carbon capture unit readiness.
US/India-based Synergy Consulting is the client’s financial adviser for the projects.
Plans for PP15 were first announced in 2015. Originally intended to be developed on a build, operate and transfer basis, the initial plan entailed three phases, each with a design capacity of 1,800MW.
Awarded gas IPPs
SPPC awarded the contracts to develop four CCGT IPP projects in the kingdom last year.
A consortium comprising Saudi Electricity Company and Saudi utility developer Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November. Each plant has a capacity of 1,800MW.
The two projects are valued at SR14.6bn ($3.9bn).
China’s Sepco 3 will undertake the engineering, procurement and construction contract for the two projects, while US-based GE will supply the CCGT for the power plants.
A team comprising the local Al Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.
Each project will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.
MEED's October 2023 special report on Saudi Arabia includes:
> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower

Exclusive from Meed
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Middle East becomes a hub as rail networks mature21 November 2025
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Riyadh sets December deadline for Prince Mishaal Road20 November 2025
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Riyadh advances with rail link prequalifications20 November 2025
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Indian contractor bids lowest for $381m Kuwait oil project20 November 2025
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Local contractor bids low for $629m Kuwait oil project20 November 2025
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Middle East becomes a hub as rail networks mature21 November 2025

The resurgence in investment in metro and intercity lines means the region is no longer an emerging market for the global rail industry. It is now an established hub with an expanding network of projects and, increasingly, the need for ongoing servicing, upgrades and new technologies.
“We are reaching a point where it is not just about building new lines. Customers are now understanding that it is not enough to just buy new trains – they also need long-term partnerships to service and maintain them efficiently,” says Martin Vaujour, Alstom’s Africa, Middle East and Central Asia region president.Alstom, which has supplied rolling stock and systems for major schemes in the region such as the Riyadh Metro, is now seeing growing demand for both new-build contracts and service agreements. “There are still lots of new investments,” he says, “but also growing activity in signalling projects, service projects and spare parts – areas that used to be small but are now taking off. That is a [source] of satisfaction for me, because those businesses are less risky, have better margins and create long-term relationships with customers.”
The change is an important development as the region becomes a mature market with diverse opportunities for the rail industry. “There was a time when countries would just buy materials with export credit,” says Vaujour. “Now, they are supporting local capacity to service and maintain trains. The mindset is evolving, and that is a very positive sign.”
Saudi expansion
Buoyed by the opening of Riyadh Metro at the end of 2024, Saudi Arabia remains an important market. “They are happy with the success [of Riyadh Metro],” says Vaujour. “There is extension work on the existing lines, new rolling stock being discussed and a potential Line 7 project. The network is expanding, and that is a great success story.”
The next wave of growth in Saudi Arabia includes the planned Qiddiya Express high-speed line, which has recently attracted expressions of interest.
“That project has been on our radar for some time,” says Vaujour. “It is under the umbrella of the Royal Commission for Riyadh City, which is very well organised and structured. That gives the project strength and credibility.”
The scheme is being developed as a public-private partnership, a model that Vaujour says fits Saudi Arabia’s stable economic environment. “Public-private partnerships (PPPs) take longer to put together because they are more complex to structure, but in countries like Saudi Arabia – stable and with the capacity to raise debt – why not?” he says.
“We are fine with PPPs. We have experience from France, the UK and Spain.”
While Alstom does not invest directly, it plays a key role in structuring deals. “We are facilitators and advisers,” says Vaujour.
“Our job is to accompany the customer, to adjust and iterate with them, and to help find the best solution. PPP is one of the tools in the box – not the simplest one, but one that works.”
The challenge in the market today is not a lack of opportunity, but deciding where to focus.
“Our main problem is not the market; it is how to be selective,” he says. “We have more than enough opportunities to ensure a nice trajectory of growth. The difficulty is to pick our battles and fight for the right ones.”
The challenge in the market today is not a lack of opportunity, but deciding where to focus
Shifting focus
In Africa and Central Asia, Alstom has long-term locomotive and commuter train partnerships that offer years of visibility. In the Gulf, by contrast, the model remains dominated by engineering, procurement and construction-style projects.
“It is more big projects, where civil contractors team up with us to deliver metros or airport people movers,” says Vaujour.
As regional urban transport networks become established, attention is turning to intercity and high-speed rail. “In the Gulf, the Abu Dhabi-Dubai high-speed project is probably the most advanced, while Qiddiya Express and upgrades to the Haramain line in Saudi Arabia could also accelerate momentum.”
Interest in high-speed connections between Riyadh, Doha and Kuwait is also growing, although such schemes will depend on electrification. “High-speed rail comes with electrification,” Vaujour notes. “And that means significant investment.”
In addition to new infrastructure, the rail sector is being reshaped by technology. Alstom is investing in clean traction systems, such as hydrogen and battery-powered trains, as well as in autonomous operations.
“Hydrogen and battery traction are progressing, but they are still in an early stage,” says Vaujour. “Diesel will continue to dominate freight for some time, because there is no clean technology yet that can deliver that level of power. But for passenger services, we are starting to see progress.”
Driverless trains are another major growth area. “Customers everywhere are interested, partly because it is increasingly hard to find drivers, and also because software drives more efficiently than humans. It is more energy-efficient and reduces wear and tear,” says Vaujour.
As the Middle East’s networks expand, upgrading existing infrastructure is becoming as important as building new lines. Signalling systems are central to this evolution. “You cannot just create new lines every year – it is too expensive,” says Vaujour. “Signalling allows you to double train frequency. It is what makes networks more efficient.”
The evolution reflects a wider transformation of the region’s rail sector. “The Middle East has become an established rail hub,” says Vaujour. “It is no longer just about building – it is about operating, maintaining and evolving.”
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Riyadh sets December deadline for Prince Mishaal Road20 November 2025

The Royal Commission for Riyadh City (RCRC) has allowed contractors until 3 December to submit bids for a contract to develop Prince Mishaal Bin Abdulaziz Road Axis-Taif Road in Riyadh.
The previous deadline was 19 November.
The scope of work covers general road improvement works, including street upgrades, drainage works, relocation of existing utilities, dry and wet utilities, and other associated infrastructure.
RCRC is investing in improving the road network in and around the kingdom's capital.
Earlier in November, MEED reported that RCRC had begun post-tender clarifications with bidders for a contract covering upgrade works on Najm Al-Din Al-Ayoubi Road in Riyadh.
The scope of work covers general road improvement works, including upgrades to three bridges at Al-Zahabi Road, Abdulrahman Adakhel Road and Atia Al-Saady Road.
In February, RCRC announced plans to develop eight road projects in Riyadh at an estimated cost of more than SR8bn ($2bn).
The projects form part of the second group in the Riyadh Ring Roads and Main Axes development programme.
The schemes include:
- The northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road development project, with a length of more than 6 kilometres (km). The scope includes the development of two main intersections, the construction of three bridges and a tunnel.
- The middle section of the Al-Thumama Road Axis development project. The scheme will cover about 10km and includes the development of five main intersections and the construction of 11 bridges and five tunnels.
- The Imam Abdullah Bin Saud Road development project, which will stretch about 9km and includes the development of four main intersections, the construction of three bridges and two tunnels.
- The Dirab Road development project, which will cover 9km and includes the development of two main intersections and the construction of nine bridges.
- The Imam Muslim Road development project, which stretches 12km and includes the development of four main intersections and the construction of four bridges. The project will serve as the future extension of the Prince Turki Bin Abdulaziz Al-Awwal Road Axis to the south.
- The road network development project surrounding King Abdullah Financial Centre, with a length of 20km. This includes the development of three main intersections and the construction of 19 bridges.
- The construction of a bridge at the intersection of King Salman Road in the east with Abu Bakr Al-Siddiq Road in the north.
- The first package of engineering modifications for crowded sites in Riyadh, encompassing improvements to alleviate traffic congestion during peak times.
In August last year, RCRC confirmed it had awarded four contracts worth SR13bn ($3.46bn) as part of the first phase of the programme to develop the city’s road network.
RCRC said the first phase will develop the axis of the main and ring roads to improve traffic movement in the city.
Other major projects by RCRC include Riyadh Metro, Riyadh Art, Sports Boulevard, King Salman International Park and the Green Riyadh project.
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Riyadh advances with rail link prequalifications20 November 2025

Saudi Arabia Railways (SAR) is expected to begin the second stage of the prequalification process for a contract covering the construction of a new railway line, known as the Riyadh Rail Link, which will run from the north to the south of Riyadh.
MEED understands that the consortiums need to propose self-funded financing arrangements for the project as part of the new round of prequalifications.
Contractors submitted their initial prequalification documents earlier this month.
The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.
The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.
The project is expected to form a key component of the Saudi Landbridge railway.
The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.
Other key sections include upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.
The start of tendering activity for the Riyadh Rail Link project makes the construction of the Saudi Landbridge more likely.
The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was put on hold in 2010 before being revived a year later.
Key stumbling blocks were rights-of-way issues, route alignment and its high cost.
In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.
If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.
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Indian contractor bids lowest for $381m Kuwait oil project20 November 2025
Indian contractor Megha Engineering & Infrastructure (Meil) has submitted the lowest bid for an upstream oil project in Kuwait, according to information published by the country’s Central Agency for Public Tenders (Capt).
The company submitted a bid of KD117m ($381m), outbidding six other companies that participated in the tender.
The scope of the project is focused on a water separation facility at the Al-Rawdatain facility in Kuwait.
The water separation facility is being developed at Gathering Centre 25 (GC-25) and a pumping facility is being developed at GC-30.
The full list of bids submitted is:
- Meil (India) – KD117m ($381m)
- Mechanical Engineering & Contracting Company (Kuwait) – KD130m
- Spetco (Kuwait) – KD158m
- Al-Kharafi (Kuwait) – KD164m
- China Oil HBP Science & Technology (China) – KD169m
- Alghanim International (Kuwait) – KD169m
- Jereh Oil & Gas Engineering (China) – KD191m
The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).
The scope of the project includes:
- Installation of three-phase low-pressure (LP) wet separator package
- Installation of low-pressure gas knock out drum (KOD)
- Installation of a high-integrity pressure protection system (HIPPS)
- Installation of wet crude oil header connection
- Installation of LP gas pipelines
- Installation of effluent water (EW) balance tank
- Installation of effluent water transfer pumps
- Installation of fuel gas sweetening modular package
- Installation of chemical injection systems
- Installation of inline analysers
- Installation of high-pressure flare
- Installation of oil recovery system with pumps, flowmeter and analyser
- Interconnecting piping, instrumentation, electrical and civil works
- Installation of fire water network
- Installation of potable water system
- Installation of control room
- Installation of substation cabling
- Related civil, structural, piping, mechanical, electrical and instrumentation works
- Installation of crude oil lines
- Installation of tie-ins for process and utilities
- Installation of effluent water pipeline
In October, KOC awarded Meil a separate contract for its planned project to develop a gas sweetening and recovery facility in West Kuwait.
Hyderabad-based Meil submitted the lowest bid for that tender, at KD69.2m ($225.5m), in February this year.
Kuwait is trying to boost project activity in its upstream sector.
The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.
In August, Kuwait announced that it was producing 3.2 million b/d.
Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
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Local contractor bids low for $629m Kuwait oil project20 November 2025
Kuwait-based Mechanical Engineering & Contracting Company (MECC) has submitted the lowest bid on a contract to develop oil and gas facilities at the Sabriya and Bahra oil fields.
The scope of the project is focused on developing a water separation facility next to Gathering Centre 23 (GC-23) and GC-24.
It also includes developing an injection facility at GC-31.
The full list of bidders for the project is:
- Mechanical Engineering & Contracting Company (MECC) – KD193m ($629m)
- Spetco – KD229m
- Alghanim International – KD239m
The tender was issued on 15 December 2024, with an initial bid submission deadline of 16 March 2025.
The bid deadline was extended more than 10 times before prices were submitted.
The client on the project is state-owned upstream operator Kuwait Oil Company (KOC).
The scope of the project includes:
- Installation of a high-integrity pressure protection system
- Installation of chemical injection systems
- Installation of effluent water transfer pumps
- Installation of a low-pressure (LP) gas pipeline from the new LP gas knockout drum (KOD) to existing LP separator gas crude accumulator (inside GC-23 & 24)
- Installation of interconnecting piping, instrumentation, electrical and civil works
- Installation of a new oil recovery system with pumps, flowmeter and analyser
- Installation of the substation and its equipment/systems
- Installation of tie-ins for process and utilities from/to existing GC-30 to new injection facility
- Installation of sludge collection, treatment and disposal system
- Associated facilities
Kuwait is trying to boost project activity in its upstream sector.
The country’s national oil company, Kuwait Petroleum Corporation, aims to increase oil production capacity to 4 million barrels a day (b/d) by 2035.
In August, Kuwait announced that it was producing 3.2 million b/d.
Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.
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