Independent Water and Power Plant (IWPP)

Power Sector in Saudi Arabia

In any economic growth, the power sector always plays a vital role and so is the case in Saudi Arabia. In the Kingdom, the power sector demands are increasing multifold due to massive industrialization plans and growth in the country, and the growing population. Saudi Arabia also enjoys one of the world’s highest per capita electricity consumption rates. All these lead the power industry to experience phenomenal growth, huge expansion plans and witness the launch of many projects. To increase the power sector capacity, the Government electrification plans call for huge capital investments. It is expected that the private sector will play an increasingly important role in meeting the rising power demands in the country.

Water Sector in Saudi Arabia

More than one fourth of the world’s desalinated water is produced in Saudi Arabia. This is a remarkable achievement in the Global desalination scenario for a Desert country. Considering it has a large agricultural base, enviable industrial base and an increasing population coupled with it being one of the world’s highest water users in terms of average water use per citizen. Desalination has been the key solution in Saudi Arabia for its fresh water needs. The existing desalination dual purpose plants have also contributed significantly in the growth of the Kingdom’s power sector.

Emerging IWPPs in Power and Water Sectors

The growing synergy between power generation and desalination in Saudi Arabia and the opening of the sector to private investment has paved the way to launch a number of Independent Water and Power Plants (IWPPs) ensuring the continued growth of the power and water sectors and the national economy as a whole.

With the Government’s support and encouragement, local and international companies are coming together and pooling their resources, investment and technical expertise to contribute towards the achievement of this objective.

Marafiq IWPP Jubail project

As Marafiq has been formed to assist in the expansion of the private sector’s participation in the development of the national economy in the Kingdom, Marafiq has launched its developmental initiatives for IWPP Jubail project. The project will contribute to the growth of Jubail industrial city and to contribute to the diversification of the national economy.

The project will be developed with synergy of International developers and local partnerships on a build, own, operate and transfer (BOOT) basis of a power generation and water desalination facility in Jubail Industrial City, which will service the needs of both the Jubail Industrial City and the Eastern Province of Saudi Arabia as a whole.

The project is implemented by a joint venture of Marafiq,SEC and PIF of Saudi Arabia and the Suez consortium (comprising Suez Energy International, Belgium, Gulf Investment Corporation, Kuwait and ACWA Power Projects Saudi Arabia), the successful bidder developer selected by Marafiq in December 2006.

The power plant will be comprised of 4 blocks and will be based on Combined Cycle generation Gas Turbines where extraction steam from the turbines supplies process steam to the desalination plant which itself will comprise 27 units that will use Multiple Effect Distillation technology (MED). This project is of national importance and is set for achieving its completion in 2010. This will add 2,745 MW of power and 800,000 cubic meters per day of desalinated water to Jubail Industrial City and the Eastern Province of Saudi Arabia

Marafiq IWPP Yanbu Project

As a continuing initiative and its role in the development of national economy and expansion of the private sector’s participation in the Kingdom through IWPP, Marafiq is progressing with the development of an IWPP project in Yanbu Industrial City.

Marafiq has invited tenders for an IWPP located in Yanbu Industrial City, on the north-western (Red Sea) coast of Saudi Arabia. The plant will have a power capacity of 1,700MW and a desalination capacity of 150,000 m3/d. The plant will use cracked heavy fuel oil (HFO) with (LAC) as a backup fuel.

The RFQ (Request for Qualification) was issued to prospective developers on the 4th of October 2007. By the end of the RFQ deadline (24th of October 2007), Marafiq had received in total 23 company and consortium SoQ’s (Statements of Qualifications). These responses came from a range of 12 countries.

On the 28th of November 2007 Marafiq announced that 12 companies / consortiums have been pre-qualified unconditionally for the Yanbu IWPP.

Subsequently, Marafiq released the RFP (Request For Proposals) on the 10th of March 2008 and bids are due to be submitted to Marafiq by the 27th of August 2008.