Home Power plant Firms submit interest in $3.5bn Saudi Arabia power and water plant

Firms submit interest in $3.5bn Saudi Arabia power and water plant

Saudi Arabia, Saudi Water Conversion Corporation (SWCC) benefit has a desalination capacity of 1.05 million cubic meters a day and a power generation capacity of 2.65GW. The water desalination plant was developed by South Korea’s Doosan, with China’s Sepco 3 the contractor for the power plant.
Prospective investors have submitted a show of interest (EOI) in the privatization of the existing Ras al-Khair desalination and power plant, a deal that is likely to be worth up to $3.5bn and represents the first major utility plant that the kingdom is aiming to sell-off to the private sector.
Firms have submitted EOI to the Saudi Water Conversion Corporation (SWCC) by the 25 June deadline for the privatization scheme.
Ras al-Khair plant has one of the largest desalination capacities in the world, which is delivered through a hybrid-configuration of multi-stage flash (MSF) thermal desalination and reverse osmosis (RO) membrane technology. MSF holds around 70 percent of the total capacity, with RO holds remaining 30 percent.
The water desalination plant was developed by South Korea’s Doosan, with China’s Sepco 3 delivering the power plant. The power plant has gas turbines installed from Germany’s Siemens. The plant has a total of around 800 employees, with SWCC employees holds for 400 of these, and Doosan and Sepco 3 holds for about 400.
The planned privatization of SWCC’s benefit is being overseen by the kingdom’s Privatisation Supervisory Committee. The program to privatize existing SWCC benefit was first launched in 2008, however little progress was made until the launch of the kingdom’s Vision 2030 in 2016, with the privatization of state benefit forming a central pillar of the ambitious reform program. SWCC selected France’s BNP Paribas as the lead and financial adviser for the planned privatization in October 2017. SWCC is also being adviser by Atkins, technical adviser, Ernst & Young, accounting adviser, and Clifford Chance and the local Abuhimed Alsheikh Alhagbani law firm (AS&H) as legal advisers.

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