Saudi Arabia to award 7.2GW Marjan, Hajr and PP12 contracts
8 November 2024

Saudi Power Procurement Company (SPPC) is expected to award the contracts to develop and build three greenfield thermal power plants with a total combined capacity of 7,200MW by the end of November.
The power plants will be sited at existing power complexes in Hajr, Marjan and Riyadh and will be separate from the ongoing independent power projects (IPPs) being publicly tendered.
The expansion project for Riyadh Power Plant 12 (PP12) will have a generation capacity of 1,800MW.
A project company formed by Saudi Electricity Company (SEC) will develop the project along with a team of China-headquartered Sepco 3 and South Korea’s Doosan Enerbility, which will undertake the project’s engineering, procurement and construction (EPC) contract, according to industry sources.
Saudi utility developer and investor Acwa Power will develop the expansion projects for Hajr and Marjan, which have respective capacities of 3,600MW and 1,800MW.
It is suggested, but not confirmed, that Sepco 3 will also undertake the EPC contract for both schemes.
Saudi-listed Acwa Power has yet to confirm or announce the new projects.
One of the sources said construction works on these expansion projects could begin by early 2025.
Original power plants
Based on MEED archives, the local Saudi Arabian Bemco signed a SR4.7bn ($1.27bn) contract with SEC to build the original 2,175MW Riyadh PP12 plant in May 2012.
The US’ GE supplied eight gas turbines for Riyadh PP12, for which it signed an estimated $141m services and maintenance contract in 2017.
Acwa Power and its partners developed the original Hajr IPP, which became operational in 2015.
It has a capacity of 3,927MW. The 20-year build, own and operate contract is valued at $2.7bn. South Korea’s Samsung C&T was the project’s EPC contractor.
Raft of gas-fired power plants
The three power plants bring the number of major gas-fired power generation facilities being built or about to begin construction in the kingdom to 15. They have a total combined capacity of roughly 30,500MW, excluding the cogeneration plants being developed for Saudi Aramco.
A team of Egypt’s Elsewedy Electric and Germany’s SIemens Energy is building a 1,200MW plant in Rabigh.
In September, MEED reported that SEC had issued limited notices to proceed to contractors for the following gas-fired plants, which are located in the kingdom’s Eastern Province:
- Qurayyah
- Ghazlan 1
- Ghazlan 2
A team comprising Egypt’s Orascom Construction and Spain’s Tecnicas Reunidas received a limited notice to proceed for the contracts to build a 3,600MW power plant in Qurayyah and a second plant, the 2,900MW Ghazlan 2 project, sources familiar with the projects said.
In addition, the contract to build a new power plant next to Ghazlan 1, which will have a capacity of 2,400MW, is understood to have been awarded to Energy China.
MEED understands that the power plants will be developed on a turnkey EPC basis.
On 7 November, SPPC announced the winning bidders for the contracts to develop four CCGT plants in Riyadh and the Eastern Region.
A consortium comprising SEC, Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop and operate the Remah 1 and Nairiyah 1 IPPs, which each have a capacity of 1,800MW.
A second consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company successfully bid for the contract to develop and operate the similarly configured Remah 2 and Nairiyah 2 IPPs.
Construction work is under way for four IPPs that SPPC awarded last year. Taiba 1 and 2 and Qassim 1 and 2 will have a combined capacity of 7,200MW.
Experts say Saudi Arabia’s liquid fuel displacement programme and the need to increase the flexibility of its electricity grid to accommodate more renewable power underpin moves to expand the kingdom’s gas-fired capacity.
Saudi Arabia envisages that renewable energy sources will account for half of its installed electricity generation capacity by 2030.
SPPC previously indicated that the plants it has tendered and awarded will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.
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Egypt is preparing to tender five seawater desalination and industrial wastewater treatment plants under its public-private partnership (PPP) programme.
The projects will be offered to local and international investors through competitive PPP tenders, Atter Hannoura, head of the PPP unit at the Finance Ministry, has told a local Arabic news channel.
The first of these involves a plant in the Suez Canal Economic Zone, which will be launched “immediately after the Eid Al-Adha holiday”, Hannoura said.
In January 2025, MEED exclusively reported that SCZone Istithmar had invited interested firms to prequalify to bid for a contract to develop a seawater desalination plant in the Suez Canal Economic Zone.
SCZOne Istithmar is wholly owned by the General Authority for Suez Canal Economic Zone.
The Finance Ministry’s PPP Central Unit, along with the European Bank for Reconstruction & Development, is supporting SCZone Isthithmar in the project’s tender proceedings.
The opportunity entails a long-term water-purchase agreement to design, finance, build, operate, maintain and transfer the plant’s ownership.
It was previously reported that this planned seawater desalination plant will have a capacity of 250,000 cubic metres a day (cm/d).
Hannoura added that the government is in negotiations with several companies, including Saudi Arabia-based Acwa, regarding large-scale desalination projects.
Additionally, the government plans to tender four industrial wastewater treatment plants, with the first two projects expected to be launched “within 45 days”.
One of these will be located in the Amreya industrial area in Alexandria, while the other will be in the Abu Rawash area in Giza, Hannoura said. Details of the other projects were not disclosed.
Alexandria wastewater treatment plant
The Authority for Potable Water and Wastewater is planning to build a wastewater treatment plant in eastern Alexandria.
The $150m facility will have a water treatment capacity of 300,000 cm/d.
In June 2025, Egypt’s government approved a financing and grant agreement for the project, with financing from the French Development Agency amounting to €68m and a grant of €2m.
Expression of interest documents were previously submitted in September 2024.
The main contract for this plant had been expected to be released in June.
Wastewater upgrades
Separately, the Construction Authority for Potable Water & Wastewater retendered the phase four expansion of the Abu Rawash wastewater treatment plant in Giza Governorate in January.
The $157m scheme will be developed under a design, build, operate and maintain contract.
The plant will have a treatment capacity of 400,000 cm/d, rising to peak flows of 520,000 cm/d. The authority issued the initial main contract tender last August.
It is unconfirmed whether this has moved beyond the bidding stage.
Egypt currently produces between 1.5 million cm/d and 2 million cm/d of desalinated water. The country aims to increase capacity to between 8 million cm/d and 9 million cm/d by 2050.
In March, Egypt’s cabinet approved a $1.2m grant agreement with the European Investment Bank to support wastewater treatment upgrades in Alexandria and Damietta.
Part of the funding will support plans to expand the Hanovil wastewater treatment plant in Alexandria Governorate.
The project will add 50,000 cm/d of treatment capacity in two phases within the plant’s existing footprint. Once completed, the facility will reach a total capacity of 100,000 cm/d.
The grant will also support expansion works at the Kafr El-Battikh wastewater treatment plant in Damietta Governorate.
The facility currently receives more than 7,000 cm/d of wastewater, while its treatment capacity is 3,000 cm/d.
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Momentum builds for Syrian projects25 May 2026

Support from the US, as well as the closure of the Strait of Hormuz, has increased expectations about the development of infrastructure projects in Syria.
On 22 May, the US published guides to investing in Syria, funded by the US Department of State, that pointed investors towards 590 planned projects in the country.
The permanent removal of US sanctions in December last year, combined with fallout from the closure and disruption to shipping through the Strait of Hormuz, has boosted interest in planned projects in the country.
Shipping through the Strait of Hormuz has been disrupted since the US and Israel attacked Iran on 28 February.
The route normally transports about 11 million barrels a day of oil and around 20% of the world’s liquefied natural gas, as well as a range of other key materials and consumer goods.
The disruption to shipping through the strait has left nations in the Middle East scrambling to find new routes for imports and exports – and Syria plays a role in many of these new plans.
This has bolstered the country’s plans to become a regional trade hub.
Energy corridors
Already, Iraq is moving a large volume of oil by truck across the country to export it from Syria’s Mediterranean ports, such as Latakia or Tartous.
In April, Iraq’s state-owned oil marketing company, Somo, said it had awarded contracts to supply about 650,000 metric tonnes of fuel oil per month for overland trucking across Syria.
On top of this, Iraq is currently looking into reestablishing a pipeline route that transported oil from Kirkuk to the port of Baniyas in Syria.
The pipeline originally went into operation in April 1952.
During the 2003 invasion of Iraq, the pipeline was damaged by US air strikes and has remained out of operation since then.
There have been repeated attempts to either refurbish the existing pipeline or build a new one along the same route, but none has been successful.
In December 2007, Syria and Iraq agreed to rehabilitate the pipeline. The pipeline was to be reconstructed by Stroytransgaz, a subsidiary of Russia’s Gazprom.
However, Stroytransgaz failed to start the rehabilitation, and the contract was nullified in April 2009.
The disruption to shipping through the Strait of Hormuz has added a new urgency to the project to reestablish pipeline flows from Iraq to Baniyas.
Syria could also play a role in plans for a pipeline to transport gas from Qatar to Europe via Syria and Turkiye.
The country could additionally form part of plans to rehabilitate and expand the Arab Gas Pipeline.
The pipeline connects Egypt, Jordan, Syria and Lebanon, although the Lebanese section is not currently operational.
Trade routes
Beyond oil and gas, Syria is emerging as a key part of other plans for new trade routes.
Earlier this month, Syria’s Transport Minister Yarub Badr said the country was seeking to restore its role as a regional transit corridor linking Europe and the Gulf by reviving cross-border trucking and rehabilitating railway connections with neighbouring countries.
He said the overland corridor between the Turkish and Jordanian borders handled between 100,000 and 115,000 trucks annually in both directions before 2011. Freight rail services also operated between Tartous port and Iraq’s Umm Qasr port via Baghdad in 2009, he added.
He said Syria was coordinating with Turkiye, Jordan and Saudi Arabia to simplify customs and border-crossing procedures and facilitate freight movement.
Railway rehabilitation is expected to take longer due to extensive infrastructure damage and the suspension of cross-border rail links over the past decade.
Badr said Syria is working with the World Bank to secure grants ranging between $65m and $200m to support railway rehabilitation and restore Syria’s role as a regional transit route linking Turkiye, Syria, Jordan and Iraq.
Earlier this month, Syria’s state-owned railway company, the General Establishment for Syrian Railways, and the operator of Syria’s Latakia International Container Terminal signed a memorandum of understanding to coordinate container traffic between the Mediterranean port of Latakia and inland freight hubs.
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The feasibility studies are expected to take four months to complete.
Tartous port
Also this month, executives from the UAE’s DP World and Syria’s General Authority for Borders and Customs (GABC) met to discuss accelerating the development of Syria’s Port of Tartous.
Essa Kazim, chairman of DP World, met with Qutaiba Ahmed Badawi, chairman of GABC, to discuss opportunities to enhance infrastructure and logistics efficiency, ensuring the Port of Tartous is well-equipped to handle the anticipated rise in trade and cargo volume.
DP World’s plans to develop the Port of Tartous form part of a 30-year concession agreement signed in July 2025 with the Syrian government.
Under the agreement, DP World committed to invest $800m to upgrade infrastructure, expand capacity, and introduce modern cargo-handling and advanced digital systems.
DP World has said that, by fast-tracking the development of the Port of Tartous, it aims to boost its operational efficiency and capacity to handle diverse cargo types, including general cargo, containers, breakbulk and roll-on/roll-off traffic.
Rizwan Soomar, DP World’s chief executive and managing director for Central Asia, the Levant and Egypt, said: “The Port of Tartous development marks a defining moment in Syria’s journey of economic recovery and modernisation of its trade infrastructure. We are proud to contribute to this vital phase of growth.”
Located on Syria’s Mediterranean coast, the Port of Tartus is the country’s second-largest port and a key maritime gateway to trade routes across Europe, the Levant and North Africa.
Beyond the port itself, DP World is exploring other opportunities to develop infrastructure in Syria with local stakeholders. These include logistics zones, inland freight hubs and transit corridors.
US interest
US-based companies are also showing significant interest in participating in new projects in the country.
On 19 May, a delegation from the Houston-headquartered engineering company KBR travelled to Damascus to discuss road networks and infrastructure projects in Syria.
During one meeting, Syria’s transport minister outlined strategic projects currently underway, including north-south and east-west corridor projects, the Damascus-Aleppo highway and railway initiatives.
Badr said that companies were needed to update economic and technical studies for some projects.
While Syria and the US both have bold ambitions to expand Syria into a regional trade and logistics hub, the poor state of the country’s infrastructure is likely to be a key challenge.
It is likely that billions of dollars will need to be invested to rehabilitate the country so that its capacity to transport goods returns to levels seen prior to the civil war that began in March 2011.
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Alec confirms Sphere Abu Dhabi contract award25 May 2026
Alec Holdings has confirmed that its subsidiary Alec Engineering & Contracting has received a letter of award for the construction contract for the $1.7bn Sphere Abu Dhabi project.
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Abu Dhabi’s Department of Culture & Tourism (DCT Abu Dhabi) and US-based Sphere Entertainment announced earlier in May that they have selected Yas Island as the location for the project.
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Consultant wins Jeddah metro design22 May 2026

French engineering firm Egis has been appointed to undertake the preliminary design consultancy for the Jeddah Metro Blue Line project.
The project client, Jeddah Development Authority, issued the tender in early January, when MEED exclusively reported that Saudi Arabia had restarted plans to build the Jeddah Metro.
Engineering consulting firms submitted bids in April, as MEED reported.
The Blue Line will run from King Abdulaziz International airport and connect to the Haramain high-speed railway station.
The line will be 35 kilometres (km) long and will include 15 stations.
Project history
Plans for the Jeddah Metro were first publicly floated in the early 2010s and were formally packaged into a wider Jeddah public transport programme around 2013-14.
In 2014, French engineering firm Systra was appointed to complete preliminary engineering for the Jeddah Metro, as MEED reported at the time.
In the same year, US-based engineering firm Aecom was awarded a SR276m ($74m) contract to provide pre-programme management consultancy services.
Under its 18-month contract, Aecom was expected to provide staff to support preliminary planning and design work for various phases of the metro project.
This was followed by the appointment of UK-based architectural firm Foster + Partners in 2015 to design the metro stations.
The project then stalled as government spending priorities were reset and major capital programmes were reviewed following the fall in oil prices in 2015, with the metro’s scope, cost and delivery model coming under reassessment.
Early concept designs envisaged a multi-line network integrated with buses and, later, other city-wide mobility upgrades.
Route details
According to Jeddah Transport Company’s website, the scheme comprises 81 stations and 197 trains serving more than 161km. The network will have four lines:
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- Blue Line: a 35km line running from King Abdulaziz International airport to the Haramain high-speed railway station, with 15 stations
- Green Line: a 17km line running through the city centre, from the downtown area to the Haramain railway station, with nine stops
- Red Line: A 59.7km line running from King Abdullah Stadium north to Old Makkah Street through King Abdulaziz Road and King Abdullah Road, with 25 stops
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Expo Riyadh tenders Saudi Arabia pavilion22 May 2026

Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, has tendered a contract to build the Saudi Arabia pavilion at the site.
The tender was issued on 19 May, with a bid submission deadline of 26 August.
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In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Al-Yamama Company.
The scope covers the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle charging.
These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners. That scope covers about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communication systems, and electric vehicle charging stations.
The overall infrastructure works – covering the construction of main utilities and civil works at Expo 2030 Riyadh – are split into three packages:
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The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, and will provide direct access to various landmarks within Riyadh.
The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, launched ERC – a wholly owned subsidiary – in June last year to build and operate facilities for Expo 2030.
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> GVT &: ECONOMY: Riyadh navigates a changed landscape
> BANKING: Testing times for Saudi banks
> UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
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> TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure pushTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16949696/main.jpg

