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Two consortiums eye Jubail 4 & 6 IWP contract

23 August 2024

 

At least two consortiums are expected to submit bids for a contract to develop an independent water project (IWP) in Jubail in Saudi Arabia's Eastern Province.

The contract covers two plants – Jubail 4 and Jubail 6 – with a total combined capacity of 600,000 cubic metres a day (cm/d) using reverse osmosis technology.

According to industry sources, teams led separately by local utility developer Acwa Power and France's Engie are expected to submit proposals for the contract.

One of the sources suggested that a third team, led by Saudi Arabia's Power & Water Utility Company for Jubail & Yanbu (Marafiq), could also be preparing to bid for the contract by 12 September.

The state water offtaker requested proposals for the Jubail 4 & 6 IWP in January this year, four months after it qualified nine individual companies and consortiums to bid for the contract.

The following utility developers and investors were qualified to bid for the contract: 

  • Abu Dhabi National Energy Company (Taqa)
  • Acciona (Spain)
  • Acwa Power (local)
  • Ajlan & Bros (local) / Rawafid Industrial Company (local)
  • Al-Jomaih Energy Water Company (local)  / Sogex Oman Company (local) 
  • GS Inima (Spain/South Korea)
  • International Power (Engie, France)
  • Marubeni Corporation (Japan)
  • Power & Water Utility Company for Jubail & Yanbu (Marafiq, local)

The desalination plant will be located 18 kilometres south of Jubail Industrial City, adjacent to four existing desalination units – Jubail phase one, Jubail phase two, and the Jubail 3A and 3B IWP facilities.

As with the previous seawater reverse osmosis (SWRO) IWP contracts that have already been awarded in the kingdom, the successful bidder, through a project company, will develop the project and sell the entire capacity and output to SWPC under a 25-year water-purchase agreement (WPA).

A credit support agreement from the government of Saudi Arabia backs SWPC’s obligations under the WPA.

SWPC’s transaction advisory team for the project comprises Netherlands-headquartered KPMG Professional Services as lead and financial adviser, UK-based Eversheds Sutherland as legal adviser and Canada’s WSP as technical adviser.

It also appointed UAE-based Future Water & Power Consulting to assist with the project tender and with finalising the site studies required for the bid.

Recent IWPs

SWPC has so far awarded the contracts for six IWP projects: Rabigh 3, Shuqaiq 3, Yanbu 4 (Ar-Rayis 1), Jubail 3A, Jubail 3B and Rabigh 4. A seventh contract for developing the Shuaibah 3 SWRO plan was also directly negotiated and awarded in 2022.

The seven IWP schemes have a total combined capacity of 3.3 million cm/d.

SWPC received two bids in April for a contract to develop the 300,000 cm/d Ras Mohaisen IWP scheme.

The bidders were Spain’s Acciona and a team comprising the local firms Acwa Power, Haji Abdullah Alireza & Partners Company and AlKifah Holding.

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Jennifer Aguinaldo

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