Saudi Water Authority receives Shoaiba bids
15 January 2025
Saudi Water Authority (SWA), the kingdom’s main producer of desalinated water, has received five bids for a retendered contract to build a new water desalination plant on Saudi Arabia’s western coast, using reverse osmosis technology.
The retendered Shoaiba 6 seawater reverse osmosis (SWRO) plant contract indicates a capacity of between 500,000 cubic metres a day (cm/d) and 545,000 cm/d.
According to industry sources, the following companies submitted proposals for the engineering, procurement, construction and commissioning (EPCC) contract:
- Alfatah Water & Power (local)
- CWC (local)
- Mutlaq Al-Ghowairi Contracting (local) / Lantania (Spain)
- Miya Water (Spain)
- VA Tech Wabag (India)
Jeddah-based Alfatah Water & Power offered the lowest bid for the contract when it was first tendered last year.
Shoaiba 6 is one of four contracts that SWA tendered last year using an EPCC contracting model.
The other three SWRO projects are Yanbu 5, Ras Al-Khair and Jubail.
VA Tech Wabag submitted the lowest bid for Yanbu 5 and won the $317m contract to build the plant in September. The plant will have the capacity to treat 300,000 cm/d of seawater.
However, on 16 December, SWA cancelled the contract and informed the bidders that it intended to recalibrate the plant’s capacity and issue a new tender over the coming weeks.
The Jubail and Ras Al-Khair SWRO projects will each have the capacity to treat 600,000 cm/d of seawater.
MEED recently reported that Najran-based Emar Al-Janoub for Contracting (EJC) had won the contract to build the Ras Al-Khair SWRO plant.
EJC offered SR2.346bn ($625.6m) to win the contract, seeing off competition from other bidders including the local Civil Works Company and Saudi Services for Electro Mechanic Works, and the Saudi branch of India’s VA Tech Wabag.
SWA is the world’s largest producer of desalinated water, with a capacity of at least 6.6 million cm/d. Plants using older and more energy-intensive techniques, such as multi-stage flash technology, account for the majority of the current capacity.
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Siemens Energy wins $1.6bn Saudi deal
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
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Photo credit: Siemens Energy
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> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
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At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
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