meed-logo

line1 line2 line3
SIGN IN / REGISTER

Jordan receives single bid for $2bn water package

10 January 2024

Jordan’s Water & Irrigation Ministry (MWI) is understood to have received a single bid for the contract to develop and operate the planned Aqaba-Amman water desalination and conveyance (AAWDC) project.

According to a source close to the project, a team comprising France’s Meridiam and Vinci and Egypt’s Orascom submitted a bid for the contract in December.

MWI prequalified five firms or teams to bid for the estimated $2bn contract. The other four prequalified bidders are:

  • Acwa Power (Saudi Arabia)
  • Huta Marine Works (Saudi Arabia) / Ajlan & Brothers (Saudi Arabia) / Almar Water Solutions (Spain)
  • Marubeni Corporation (Japan)
  • Naqel Water Solutions (Suez / CCC)

In November, the EU signed a €50m ($53m) grant contribution to the project with the European Investment Bank (EIB), in addition to adopting an additional €47m EU contribution.

That grant complements a new concessional loan of €100m from the EIB. All funding falls under the EU’s Economic and Investment Plan for the Southern Neighbourhood.

The latest contributions follow a €200m financing for the project signed by the EIB in December 2022, representing the first formal commitment of international support.

MWI issued the request for proposals for the contract in March 2022 and initially gave qualified bidders until 6 September that year to submit proposals.

The bid submission date was revised multiple times until a final bid deadline of 5 December last year was set.

“The project could face some financing challenges,” said one source close to the project, citing its scale.

Estimated to cost between $2bn and $3bn, the build-operate-transfer project is Jordan’s single largest planned infrastructure scheme to date. It will pipe water from the southern coast to the country’s northern regions.

The desalination component of the project will have the capacity to treat 835,000 cubic metres a day (cm/d) of water, unlike the previously reported two-phased approach with a smaller capacity for the initial phase.

The conveyance segment of the project includes the construction of a seawater intake pump station, reservoir, pipeline, booster pump stations and freshwater collection pipes.

The project is expected to use clean energy in line with the government’s commitment to reduce greenhouse gas emissions.

US-headquartered CDM Smith is the main project consultant and is supported by Beirut-headquartered Dar al-Handasah and Netherlands-based KPMG.

Image: Aqaba, Pixabay  

https://image.digitalinsightresearch.in/uploads/NewsArticle/11425628/main4851.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia foregoes April nuclear bid deadline

    2 May 2024

    The 30 April bid deadline for nuclear technology providers to submit bids for a contract to build Saudi Arabia's Duwaiheen nuclear power plant project has passed without any clear indication of a new tender closing date, according to two sources familiar with the project.

    "The understanding is that the tendering process requires a level of [political] stability in the region. This seems like an automatic postponement for the project tendering process," one of the sources said.

    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)

    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, MEED reported in July 2023.

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

    However, the ongoing conflict between Israel, Gaza and other neighbouring countries appears to be a major contributing factor to the extended procurement timeline of the Duwaiheen nuclear plant project.

    In October, an industry source said the ongoing conflict in Gaza is not likely to help advance negotiations between the countries with a key stake in the project.

    It is understood that Riyadh is using its nuclear power plant project, along with its plan to enrich uranium sources as part of its industrial strategy, as a bargaining chip with the US government. The White House is pushing for the normalisation of relations between Israel and Saudi Arabia and opposed to uranium enrichment.

    A month before the latest conflict between Israel and Hamas started, it was reported that senior Palestinian officials were in Riyadh for talks with senior Saudi and US officials.

    According to a BBC report in September 2023, the Palestinians were negotiating for hundreds of millions of dollars and more control of land in the occupied West Bank in the event of a three-way deal between Israel, Saudi Arabia and the US.

    On 14 October, Saudi Arabia suspended the talks on potentially normalising ties with Israel, which it never officially recognised as an independent state.

    Consultants

    Duwaiheen Nuclear Energy Company last 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. 

    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.

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

    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.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11729932/main.jpg
    Jennifer Aguinaldo
  • Saudi Arabia enjoys growth conditions

    1 May 2024

    Register for MEED's guest programme 

    Sources: IMF (April 2024), MEED Projects, MEED

    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/11730016/main.gif
    MEED Editorial
  • Bapco and Masdar plan 2GW wind projects

    1 May 2024

    Abu Dhabi Future Energy Company (Masdar) has signed an agreement with Bahrain’s Bapco Energies to jointly explore developing and investing in wind projects with a capacity of up to 2GW.

    The agreement for near-shore and offshore wind farms is Masdar’s first in Bahrain.

    At up to 2GW, the clean energy collaboration will support Bahrain in accelerating the decarbonisation of critical industrial sectors and open avenues to develop new market sectors.

    Bahrain aims to reduce emissions by 30% by 2035 and achieve net-zero emissions by 2060, as outlined in its National Energy Strategy.

    Bapco Energies Group chief executive Mark Thomas said the partnership with Masdar “demonstrates our commitment to diversifying the kingdom of Bahrain’s energy mix to include cleaner energy sources, underscoring our role as leaders in renewable energy development”.

    Masdar has codeveloped several wind projects, including the 400MW Dumat Al Jandal wind farm in Saudi Arabia, the 630MW London Array offshore wind project in the UK, and the 103.5MW UAE wind programme, which utilises innovative technology to capture low wind speeds at utility scale.

    Masdar aims for a renewable energy portfolio capacity of 100GW by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11729221/main.jpg
    Jennifer Aguinaldo
  • Developer appoints Luce Palm Jumeirah contractor

    1 May 2024

    Register for MEED’s guest programme 

    Taraf Properties, the real estate division of UAE-based investment group Yas Holding, has appointed Al Ashram Contracting as the main contractor to build the Luce Residences project in Dubai.

    Located on the east crescent of Palm Jumeirah, the beachfront development is a nine-storey residential building comprising 38 two-, three- and four-bedroom units.

    Local enabling contractor APCC Building Contracting won the enabling works contract for the Luce Residences in July last year.

    The piling works began in August last year. Abu Dhabi-based MZ Architects is the project consultant, and the project is scheduled to be completed by January 2026.

    Dubai real estate developments dominate the UAE’s construction market, with schemes worth over $323bn in execution or the planning phase.

    Growing demand for property in Dubai, combined with a resilient economy, has brought optimism to the emirate’s real estate market.

    As the market develops further, a broader range of opportunities is expected to emerge for both local and international contractors.

    This is in line with GlobalData’s forecast, which expects the UAE construction sector’s output to grow by 4% in real terms in 2024 and 4.2% in 2025, supported by developments in infrastructure, energy and utilities, and residential construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11728542/main.jpg
    Yasir Iqbal
  • Bids submitted for Sabic hydrogen project

    1 May 2024

     

    Register for MEED's guest programme 

    Bids have been submitted for a low-carbon hydrogen project that Saudi Basic Industries Corporation (Sabic) is due to develop in the industrial city of Ras Al Khair in Saudi Arabia’s Eastern Province.

    The project, known as the San VI Low-Carbon Hydrogen Complex, is estimated to be worth $300m.

    Bids for the project were submitted ahead of the deadline of 31 March 2024, according to information first obtained by MEED Projects.

    The following companies are understood to have submitted bids:

    • Larsen & Toubro (India)
    • JGC Corporation (Japan)
    • Samsung Engineering (South Korea)
    • Hyundai E&C (South Korea)
    • Toyo Engineering Corporation (Japan)

    When it was originally tendered in October last year, the project’s bid submission deadline was set for the end of December 2023.

    Sabic is also developing a second low-carbon hydrogen project, which is currently in the study phase.

    This project, known as the Horizon II Low-Carbon Hydrogen Complex, is also estimated to have a value of $300m.

    The scope of both projects is expected to include:

    • Construction of processing units
    • Construction of storage facilities
    • Construction of distribution units
    • Installation of hydrogen compressors
    • Construction of associated facilities

    The main contract tender for the Horizon II Low-Carbon Hydrogen Complex is anticipated to be issued by 2025.

    National oil company Saudi Aramco owns a 70% stake in Sabic.

    In October last year, Ashraf Al Ghazzawi, executive vice-president of strategy and corporate development at Aramco, said the company aims to produce 2 million tonnes of low-carbon hydrogen by 2030.

    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/11728618/main.gif
    Wil Crisp