Saudi Arabia seeks advisers for IWPP programme

Bids for the consultancy contracts went in last month.

A number of companies have submitted bids for advisory work on Saudi Arabia’s programme of independent water and power projects (IWPPs). Four projects are being considered: those at Shoaiba, Jubail, Ras Al-Zour and Shuqaiq as described in November’s GWI.

The client is a joint team comprised of the Saline Water Conversion Corporation (SWCC) and the Saudi Electricity Company (SEC). Work is split into three separate packages: legal, technical and financial.

Six companies are understood to have submitted bids for the technical consultancy contract, six for the legal work and a further six for the financial advisory mandate. The work covers preparation of bid documents for Shoaiba (phase 3), Shuqaiq (phase 2) with an option of drafting further documentation for Ras Al- Zour and Jubail.

Ras Al-Zour (capacity 150MGD) will supply desalinated water to Riyadh; Shoaiba (capacity 150MGD) will serve Makkah, Jeddah and Al- Taif; while Jubail (capacity 75MGD) will supply cities in the Kingdom’s eastern province. At 20-25MGD, Shuqaiq is a much smaller plant and will serve the Assir region.

The IWPP programme is being followed as an alternative to the schemes planned under the Saudi gas venture. Negotiations on the latter have been difficult but are still underway. As a result, no clear decision has been taken to proceed with the IWPP programme.

“This exercise could prove completely meaningless”, said a representative from one company which is bidding for the work. “SWCC and SEC are hedging their bets”.

The latest on the gas venture is that CVs 1 and 3 are now looking more positive while CV2 (which includes Shoaiba) is struggling. Shuqaiq is the only project which will definitely be implemented outside the framework of the gas venture.

The bids for advisory work went in during mid-December although the SWCC/SEC team is understood to have asked for further clarification from some of the parties. Appointments are expected within the next month.

Key competitors for the technical consultancy include Mott MacDonald and Germany’s Fichtner. ANZ Investment Bank, HSBC and Credit Suisse First Boston are all thought to have submitted bids for the
financial work.