Saudi Arabia moves nuclear bid deadline

2 November 2023

Saudi Arabia's Duwaiheen Nuclear Energy Company has extended the tendering process for the contract to build the kingdom's first large-scale nuclear power plant facility.

According to a source close to the project, the client expects to receive proposals for the contract by 31 December, two months later than the previous bid submission deadline.

Companies that have been invited and are expected to bid for the contract include:

  • China National Nuclear Corporation (CNNC, China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Rosatom (Russia) 
  • EDF Group (France)

    Neither King Abdullah City for Atomic and Renewable Energy (KA-Care) nor the apparent bidders have confirmed the bidders list.

    The project is in the so-called bid invitation specification stage, and there are no direct negotiations taking place between the client and the potential bidders at this stage, as MEED reported in July.

    Saudi Arabia plans to build a large-scale nuclear power plant facility as part of its energy diversification agenda. 

    Earlier this month, a source close to the project said the ongoing conflict in Gaza is not likely to help advance negotiations between the countries with a key stake in the project.

    Consultants

    Duwaiheen Nuclear Energy Company this year received three bids for the project management consultancy package for the nuclear plant project.

    MEED understands the following companies submitted proposals for the contract:

    • Atkins (UK/Canada)
    • Worley (Australia)
    • Assystems (France)

    Two of the three bidders have had previous engagements with the Saudi nuclear energy project. 

    In July 2018, France’s Assystem was appointed to conduct a site characterisation study, environmental impact assessment and preliminary safety analysis report to assist with the selection of the preferred site for the kingdom’s first planned nuclear power project.

    A site at Khor Duwaiheen, on the coast near the UAE and Qatari borders, was subsequently chosen for the first project.

    The same year, KA-Care appointed Worley for the project management office consultancy role for the nuclear energy programme. Worley is understood to have previously completed the Large Nuclear Power Plant (LNPP) site selection study for KA-Care.

    KA-Care also awarded three separate contracts for the project's legal, technical and financial advisory works.  It awarded a team led by UK-headquartered EY the financial advisory contract in May 2022. Legal and technical consultancy contracts for the project were signed earlier. 

    2.8GW project

    The Duwaiheen nuclear power plant is expected to be procured using a traditional design-and-build model. 

    In September 2016, MEED reported that Saudi Arabia was carrying out technical and economic feasibility studies for the first reactors, and was also looking at possible locations for the kingdom’s first nuclear project, a 2.8GW facility.

    In March 2022, Saudi Arabia announced the establishment of a holding company – understood to be the Duwaiheen Nuclear Energy Company – to develop nuclear power projects in the country to produce electricity, desalinate seawater and support thermal energy applications. 

    Related reads: 

    Prince Abdullah bin Khalid bin Sultan, Saudi ambassador to Austria and permanent representative to the International Atomic Energy Agency (IAEA), said at the time that the kingdom was working on a framework programme for nuclear energy in 2022-27, which includes “capacity building and collaboration with international institutes for research and development”.

    This followed Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud's announcement in January 2022 that Saudi Arabia has uranium resources that it wants to exploit transparently through partnerships.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11265079/main.gif
    Jennifer Aguinaldo
    Related Articles
    • Ewec plans new independent water project

      15 May 2024

      Abu Dhabi-based offtaker Emirates Water & Electricity Company (Ewec) is considering procuring a new independent water project (IWP), according to industry sources.

      The planned seawater reverse osmosis (SWRO) facility is expected to have a capacity of 90 million imperial gallons a day (MIGD), equivalent to roughly 409,000 cubic metres a day (cm/d).

      Sources tell MEED the proposed location is either Al Nouf or Taweelah in Abu Dhabi.

      A facility in Al Nouf will require a long pipeline that will connect the plant to Abu Dhabi, and will likely involve the participation of the Abu Dhabi Transmission and Despatch Company (Transco), according to one of the sources.

      It is understood Ewec could seek interest from developers for the new IWP before or by the end of the year. 

      This development follows the revision of the scope and capacity of the emirate's fourth IWP scheme, which is currently in the tendering stage.

      The Saadiyat Island IWP will have a capacity of 60 MIGD.

      When it was tendered in July of last year, the original scheme – called Abu Dhabi Islands IWP –  comprised two SWRO plants each with a capacity of 50 million imperial gallons a day (MIGD), to be located in Saadiyat and Hudayriat islands in Abu Dhabi.

      The current tender closing date for the Saadiyat Island IWP project is 29 June.

      "They need this additional planned capacity [in Al Nouf or Taweelah] since the other scheme in Hudayriat has been cancelled," the source added.

      Ewec previously said these projects are important to Abu Dhabi’s water security due to their proximity to the load centre of the Abu Dhabi islands, as well as the scheduled decommissioning in 2028 of the integrated power and water desalination plant at Sas Nakhl.

      As in previously tendered IWPs, the successful developer or consortium will own up to 40% of a special-purpose vehicle that will implement these projects, while the remaining equity will be primarily held indirectly by the Abu Dhabi government.

      Awarded contracts 2023

      Ewec awarded the contracts for two IWPs last year. Ewec, Abu Dhabi National Energy Company (Taqa) and France’s Engie signed the WPA for the Mirfa 2 IWP project in February 2023. They reached financial close for the project, which will have a capacity of 120 MIGD, two months later.

      Taqa, Ewec and South Korea’s GS Inima reached financial close on the $444m Shuweihat 4 SWRO IWP in December. Located within the Shuweihat power and water complex, the facility will supply up to 70MIGD of potable water. Commercial operations are expected to commence in the second quarter of 2026.

      https://image.digitalinsightresearch.in/uploads/NewsArticle/11772504/main.gif
      Jennifer Aguinaldo
    • Saudi Arabia expands PPP pipeline

      14 May 2024

       

      Register for MEED’s guest programme 

      Saudi Arabia’s National Centre for Privatisation & PPP (NCP) has seen significant progress in its public-private partnership (PPP) programme in the past year, according to Salman Badr, vice-president of the state PPP procuring authority.

      Speaking at the MEED Mena Construction Summit in Riyadh, Badr said that NCP has a “healthy pipeline” of over 200 approved projects in different stages of development. 

      He noted that another 300 projects are currently under review.

      It is understood that the pipeline includes more than 180 schools, following the award of contracts to develop and operate 60 schools each in Jeddah and Medina in 2020 and 2022.

      “New sectors like healthcare and education have been opened up for public-private partnerships beyond the traditional water and power sectors,” said Badr.

      The kingdom is understood to have awarded more than 60 PPP contracts since 2017, when NCP was formed.

      Badr said private sector participation has “allowed the government to deliver infrastructure projects much more efficiently”. 

      Recently completed projects include the kingdom’s first hospital PPP project in Medina. 

      In addition to healthcare and school facilities, NCP’s pipeline includes airports, seaports and roads, catering to Saudi Arabia’s growing infrastructure needs as the population and economy expand.


      MEED’s April 2024 special report on Saudi Arabia includes:

      > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
      > BANKING: Saudi lenders gear up for corporate growth
      > UPSTREAM: Aramco spending drawdown to jolt oil projects
      > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

      > POWER: Riyadh to sustain power spending
      > WATER: Growth inevitable for the Saudi water sector
      > CONSTRUCTION: Saudi gigaprojects propel construction sector
      > TRANSPORT: Saudi Arabia’s transport sector offers prospects

       

      https://image.digitalinsightresearch.in/uploads/NewsArticle/11768175/main.jpg
      Sarah Rizvi
    • Rua Al Madinah seeks construction partners

      14 May 2024

      Register for MEED’s guest programme 

      Saudi Arabia’s Rua Al Madinah, the Public Investment Fund (PIF) subsidiary tasked with Medina’s tourism and cultural development, has revealed that construction work is under way on the main tunnel that will take all incoming traffic towards the Harem area. 

      Extensive works are also ongoing to redevelop the airport road and modernise the city’s wider transportation network. 

      “There are significant opportunities for contractors and partners,” said Abdulsalem Alharbi, projects delivery director, Rua Al Madinah, at the MEED Giga Projects event in Riyadh on 13 May. 

      “We are looking for capable service providers and strategic partners to support the large-scale infrastructure and construction works.”

      Alharbi said five packages of residential towers – comprising over 120 towers in total – are currently in various stages of design and tender. 

      The superblock 5 package includes 18 towers and is already on the market, while superblock 4, involving 19 towers, is in the design phase.

      Packages District 9 and District 10, consisting of 35 towers and 46 towers, respectively, are seeking partners to take on development roles. 

      Alharbi also highlighted several investment opportunities being developed to support the growing tourism sector, including a central kitchen, cold storage warehouse, commercial laundry and staff accommodation facilities.

      “This represents a major chance for local and international companies to participate in the redevelopment of Medina,” he added.

      Project background

      Crown Prince Mohammed Bin Salman Bin Abdulaziz Al Saud inaugurated the infrastructure works and unveiled the masterplan for the Rua Al Madinah development in August 2022.

      Before this, US-based Hill International was awarded a contract in 2021 for the project management of road works at the Madinah Central Area (MCA).

      In June 2022, a local media report cited China Railway 18th Bureau as having won a contract to build the Medina tunnel. 

      The tunnel, valued at $970m, was expected to be completed within 42 months. The work includes building the AH tunnel, the Ali Bin Abi Talib tunnel, the airport tunnel and related projects, including a pedestrian bridge.

      Rua Al Madinah Holding Company CEO Ahmed Al Juhani told MEED in February that construction work on the Ali Bin Abi Talib road has been completed, making it the first tunnel to be finished as part of the Rua Al Madinah project. 

      In February 2023, US-based Parsons won a $15m contract to provide construction project management consultancy and contract administration services (PMCM) for the project. The US consultancy firm will manage the main infrastructure works, including the tunnel, road and utility works.


      MEED’s April 2024 special report on Saudi Arabia includes:

      > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
      > BANKING: Saudi lenders gear up for corporate growth
      > UPSTREAM: Aramco spending drawdown to jolt oil projects
      > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

      > POWER: Riyadh to sustain power spending
      > WATER: Growth inevitable for the Saudi water sector
      > CONSTRUCTION: Saudi gigaprojects propel construction sector
      > TRANSPORT: Saudi Arabia’s transport sector offers prospects

       

      https://image.digitalinsightresearch.in/uploads/NewsArticle/11766934/main.jpg
      Sarah Rizvi
    • Emirates Group posts $5.1bn profit

      14 May 2024

      Emirates Group, comprising Emirates Airline and Dnata, has posted a record profit of AED18.7bn ($5.1bn) in its latest fiscal year ending 31 March, up 71% compared to a AED10.9bn profit for last year.

      The group’s revenue stood at AED137.3bn, an increase of 15% over last year’s results.

      Its cash balance was AED47.1bn, the highest ever reported and an 11% increase from last year.

      According to its annual report, the group's profits for the last two years reached AED29.6bn, which has surpassed pandemic losses of AED25.9bn in 2020-22.

      The group has declared a dividend of AED4bn to its owner, the Investment Corporation of Dubai.

      Emirates Group chairman and CEO, Sheikh Ahmed Bin Saeed Al Maktoum, attributed the company's record performance to Dubai’s progressive policies.

      He added that profits enable further investments in new aircraft, facilities and equipment, technology, products and services, and staff.

      Business performance

      Emirates reported a new record profit of AED17.2bn, up 63% from AED10.6bn last year.

      The airline's revenue rose 13% to AED121.2bn while capacity increased by 20% to 57.7 billion available tonne-kilometres.

      The group's cargo and logistics arm, Dnata, reported a profit of AED1.4bn, up more than four-fold compared to its AED331m profit last year.

      Revenue increased 29% to hit a new record high of AED19.2bn, reflecting increased customer flight activity and travel demand across its UAE and worldwide business divisions. 

      Investments and outlook

      In 2023-24, the group collectively invested AED8.8bn in new aircraft, facilities, equipment, companies and the latest technologies to support its growth plans.   

      In line with this, Emirates expects to receive delivery of 10 new A350 aircraft in 2024-25.

      The group’s total workforce grew by 10% to 112,406 employees, its largest ever.

      In terms of environment, social and governance (ESG) initiatives, in 2023-24, Emirates signed new supply agreements to uplift sustainable aviation fuel (SAF) at its Dubai hub for the first time, and also in Amsterdam and Singapore.

      The airline operated the first A380 demonstration flight using 100% SAF in one engine, collecting data to support industry efforts to enable a future of 100% SAF flying.

      The business outlook is positive and the group expects customer demand for air transport and travel to remain strong in the coming months.

      "As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations and volatile environments caused by socio-political changes," said Sheikh Ahmed.

      "Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.”

      Sheikh Ahmed affirmed the Dubai government's plan to start the next phase of expansion at Al Maktoum International airport, which will eventually be the new hub for Emirates' and Dnata’s operations.

      "This AED128bn investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and Dnata’s growth," he added.


      MEED's April 2024 special report on the UAE includes:

      > COMMENT: UAE rides high on non-oil boom
      > GVT & ECONOMY: Non-oil activity underpins UAE economy

      > BANKING: UAE banks seize the moment
      > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
      > DOWNSTREAM: UAE builds its downstream and chemical sectors

      > POWER: UAE marks successful power project deliveries
      > WATER: Dubai tunnels project dominates UAE pipeline
      > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector

      > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

      https://image.digitalinsightresearch.in/uploads/NewsArticle/11766365/main13521409.jpg
      Jennifer Aguinaldo
    • Amaala first phase to complete by 2027

      14 May 2024

      Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

      Register for MEED's guest programme

       

      The first phase of the Red Sea Project in Saudi Arabia is due for completion in 2025 while the first phase of Amaala will be completed by 2027.

      Ben Edwards, group head of cost, commercial and procurement, Red Sea Global (RSG), confirmed the timelines at the MEED Saudi Giga Projects event in Riyadh on 13 May.

      "The whole scheme is expected to be completed by 2030,” Edwards said.

      Amaala will deliver 1,945 hotel keys and 430 residential units by 2026. One island and two coastal locations will be further developed by 2030.

      Edwards added: “We opened the Six Senses resort in November last year, St Regis opened in January and the Thuwal resort will be ready this year.”

      Amaala progress

      Amaala is a coastal development that covers an area of about 2,500 square kilometres.

      Amaala previously planned the project. In October 2022, Amaala merged with The Red Sea Development Company to form RSG, which is now implementing the project.

      The scheme's first phase, which focuses on the Triple Bay masterplan, will be completed in 2027. 

      The total development will include 27 hotels with a combined 37,000 keys.

      RSG has adopted a construction management approach to deliver its projects. 

      Schemes are divided into individual trade works packages procured by the developer rather than being awarded to a series of main contractors. There are typically about 20 work packages for each project.


      MEED's April 2024 special report on Saudi Arabia includes:

      > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
      > BANKING: Saudi lenders gear up for corporate growth
      > UPSTREAM: Aramco spending drawdown to jolt oil projects
      > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

      > POWER: Riyadh to sustain power spending
      > WATER: Growth inevitable for the Saudi water sector
      > CONSTRUCTION: Saudi gigaprojects propel construction sector
      > TRANSPORT: Saudi Arabia’s transport sector offers prospects

       

      https://image.digitalinsightresearch.in/uploads/NewsArticle/11765173/main5026.jpg
      Sarah Rizvi