A consortium composed of ACWA Power Projects, Gulf Investment Corporation (GIC), and Mitsubishi Corporation has been confirmed as preferred bidder for Shuqaiq Independent Water and Power Project (IWPP). The project to be developed on a BOO (build, own, operate) basis will be located at Shuqaiq, on the southwestern coast of Saudi Arabia will increase much needed power and water supplies to Abha and Jizan regions. The Project is the second IWPP being developed by the Water and Electricity Co. (WEC) and represents a major development in the Saudi water and power sector to help satisfy the increasing national demand.
The project consists of a thermal power plant and a reverse osmosis technology desalination plant together with all support facilities such as fuel unloading platform and water intake and discharge structures. The complex will dispatch 850 MW of Power and 47 MIGD (million imperial gallons per day) of water.
WEC selected the consortium following a competitive tendering process. The tender received three bids from international consortia, a reflection of the interest and confidence that international power companies have in the Kingdom of Saudi Arabia and in the ambitious and far reaching privatization process that the Kingdom has embarked on.
The consortium and WEC intend to enter into a series of agreements including a 20-year Power and Water Purchase Agreement (PWPA) by this year (2006) end.
Note to Editors
GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC provides a range of financial services that support the development of private enterprise and economic growth in the region. GIC is an investor in Al-Ezzel IPP, in Bahrain, Ras Laffan IWPP, in Qatar, and in United Power Company, in Oman. It is also active in providing financial advisory services to the power sector in the region. GIC is one of the most highly capitalized financial institutions in the region. As at end 2005, GIC had total assets exceeding USD7.4 billion and shareholders’ equity of about USD1.6 billion.
For additional information on GIC visit: www.gic.com.kw
ACWA Power Projects is an owner and developer of infrastructure assets to deliver water and power to cater for the rapidly increasing demand fueled by social and economic growth of nations. ACWA Power Projects is owned in equal proportions by A.K. Al-Muhaidib and Sons Group, Abdullah Abunayyan Trading Co, and Mada Company for Industrial & Commercial Investment (one of Al Rajhi group companies) who are three well established Saudi Arabian companies who together represent a formidable partnership with the requisite diversity of experience to deliver competitive value to privately finance water and power transaction. ACWA Power Project is an investor in Shuaibah IWPP and Rabigh IWSP both of which are multi billion Dollar projects now under construction.
Water & Electricity Co. (WEC) was established as a limited liability company in 2003 pursuant to supreme economic council resolution (5/23). WEC was formed with an authorized share capital of SAR 30,000,000. WEC is equally owned by Saline Water Conversion Corporation (SWCC) and Saudi Electricity Co. (SEC). WEC’s corporate purpose is the sale and purchase of water and electricity and all required ancillary activities. WEC will be the counterparty under the PWPA and will buy the Project’s water and electricity. WEC will in turn sell this water and electricity on to SWCC and SEC respectively.
For additional information on Water & Electricity Co. visit: www.wec.com.sa
