JUBAIL, 10 September 2007 — Marafiq, the Power and Water Utility Company for Jubail and Yanbu, is inviting Expressions of Interest from today from interested parties for the proposed development and tender of a greenfield Independent Water and Power Project (IWPP) to be located at Yanbu Industrial City.
The IWPP project will be 1,500 to 1,700 MW and 150,000 cubic meters per day.
Marafiq will have a 40 percent shareholding in the project company that will build, own and operate the IWPP, with 60 percent of the shares to be tendered to the international market. A specific onshore site has been selected for the IWPP. The plant will be fueled by heavy fuel oil with crude oil as backup fuel, or crude oil only.
The IWPP will benefit from a 25-year Power and Water Purchase Agreement (PWPA) with a new company (Newco), a special-purpose vehicle (SPV) 100 percent owned by Marafiq, which will be structured on an energy-conversion basis. Newco will supply all power and water capacity and output to Marafiq, who in turn will supply the power and utility requirements of Yanbu Industrial City.
Yanbu Industrial City is one of the fastest growing locations in Saudi Arabia. It benefits from a strong base of industrial customers such as Saudi Basic Industries Corp. (SABIC) and its affiliates, Saudi Aramco-owned and affiliated plants and other independent industries.
Several projects are under construction or in an advanced development phase.
Following the submission of Expressions of Interest, Marafiq expects to issue a Request for Qualification (RFQ) document in September to invite statements of qualification from interested parties. Marafiq expects to issue a Request for Proposals to pre-qualified developers in October 2007.
