Abu Dhabi-led group submits lowest price for SEC plant

ALKHOBAR: An Abu Dhabi-led group submitted the lowest price to build a power station in Saudi Arabia, a Saudi statement said, and a source said the group will go into exclusive talks on the project.
The consortium led by Abu Dhabi National Energy Co. (TAQA) and also comprising Samsung Engineering and Qatar Electricity & Water Co. (QEWC) had made the lowest bid for the Rabigh 2 project, a statement from the Kingdom’s sole utility Saudi Electricity Co. (SEC) said.
The bidding consortium will enter into exclusive talks with SEC and, if selected, will jointly own 50 percent of the project company along with SEC, a second source said.
TAQA’s bid ranked ahead of four other consortiums that bid for the plant, included groups headed by Saudi-based ACWA Power, South Korea’s Kepco and Japan’s Marubeni.
Rabigh 2 is a green-field heavy fuel oil power plant, the fourth project in SEC’s IPP program.
It is located 175 km north of Jeddah on the west coast of the Kingdom.
Samsung and Alstom are the selected engineering, procurement and construction contractors, while the electricity generated by the plant will be sold via a 25-year power purchase agreement to SEC.
TAQA, whose controlling shareholder is the Abu Dhabi government, owns an interest in the 250 MW Jubail power plant.
The financial close for the project is scheduled for before March 31, 2013, the statement added.