Home Power plant Saudi Arabia reveals 37 firms interested in $3.5bn Ras al-Khair plant privatization

Saudi Arabia reveals 37 firms interested in $3.5bn Ras al-Khair plant privatization

Saudi Arabia Ras al-Khair plant has a current operating desalination capacity of 1.05 million cubic meters a day and a power generation capacity of 2.65GW. The plant has a current book value of $3.3-3.5bn, according to sources close to the privatization program.
Saudi Arabia’s Saline Water Conversion Corporation (SWCC) has published that it received 37 companies show interest (EOI) for the planned privatization of the existing Ras al-Khair desalination and power plant, a deal which is likely to be worth up to $3.5bn.
Saline Water Conversion Corporation (SWCC) had received EOIs by 25 June for the first deal to privatize an existing utility plant in Saudi Arabia.

Saline Water Conversion Corporation (SWCC) publish that the following firms submitted EOI for the Ras al-Khair tender:
Financial
Aberdeen Standard Investments (UK)
Actis (UK)
Hassana Investment Company (Saudi Arabia)
IPM (UK)
Mubadala (UAE)
Tamasuk Holding (Saudi Arabia)
Strategic
Acwa Power, Saudi Arabia
Advanced Water, Saudi Arabia
Al Bawani Water & Power, Saudi Arabia
Alfanar, Saudi Arabia
Alghanim International, Kuwait
China Power International Holding Ltd, China
EDF, France
Edra Power Holdings, Malaysia
Engie, France
FAS Energy, Saudi Arabia
FCC Aquaila, Spain
HaJi Abdullah Alireza & Co Ltd, Saudi Arabia
Jera, Japan
Kansai Electric Power Corporation, Japan
Kindasa Water Services, Saudi Arabia
Lamar Holding Company, Saudi Arabia
Marafiq, Saudi Arabia
Marubeni, Japan
Metito, UAE
Nesma, Saudi Arabia
NTPC, India
Sojitz, Japan

The Ras al-Khair plant has a current operating desalination capacity of 1.05 million cubic meters a day and a power generation capacity of 2.65GW. The plant has a current book value of $3.3-3.5bn, according to sources close to the privatization program.
The 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 reverses osmosis (RO) membrane technology. Multi-stage flash (MSF) accounts for about 70 percent of the total capacity, with RO accounting for the left 30 percent.
The RO plant has been in operation since 2014, with the MSF desalination component and the power generation capacity arriving online in 2015 and 2016 respectively.
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.
Around 800 employees work in this plant, which has SWCC around 400 employees, Doosan and Sepco 3 also around 400 employees.
The planned privatization of the Saline Water Conversion Corporation (SWCC) benefit is being overseen by the kingdom’s Privatisation Supervisory Committee.
The program to privatize the existing Saline Water Conversion Corporation (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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