JEDDAH, 10 October 2007 — Marafiq, the power and water utility company for Jubail and Yanbu, is seeking tenders from national and international companies for the proposed 1,700 megawatt and 150,000 cubic meters per day independent water and power project (IWPP) at Yanbu Industrial City.
The last date for submission of the statements of qualifications (SoQ) is Oct. 25, Zaid Abdulrahman Al-Buti, general manager of IWPP at Marafiq, said in a statement yesterday.
Marafiq will have a 40 percent shareholding in the build, own, operate and transfer project. The remaining 60 percent of the shares will be tendered to pre-qualified developers.
A specific onshore site has been selected for the IWPP. The plant will be fueled by heavy fuel oil or crude oil.
The IWPP will benefit from a 25-year power and water purchase agreement (PWPA) with the new company (Newco), a specia purpose vehicle (SPV) which is 100 percent owned by Marafiq. Newco will be structured on an energy conversion basis. It will supply all power and water capacity and output to Marafiq, which in turn will supply the power and utility requirements of the Yanbu Industrial City, the statement further said.
The project’s commercial operation is expected not later than April 2012.
Marafiq and Newco are in talks with the Ministry of Finance to grant Newco a credit support agreement.
As credit enhancement for Newco’s PWPA obligations, Marafiq’s customers pay their power and potable water utility charges into a collection account.
Bids will be due on April 30, 2008.
Yanbu Industrial City is one of the fastest growing locations in Saudi Arabia. It benefits from a strong base of large and established industrial customers such as Sabic and Saudi Aramco-owned or affiliated plants, and several other independent industries.