Marafiq and Shoaiba deadlines pushed back
- From: Vol 5, Issue 12 (December 2004)
- Category: General
- Region: Middle East
- Country: Saudi Arabia
- Related Companies: Abunayyan Group, ACWA Power, Al Bugshan, Al-Muhaidib Group, Al-Zamil, Doosan Heavy Industries, General Electric (GE), Hyundai, International Power, Itochu, Korea Electric Power Corp, Mitsubishi, Mitsui & Co., National Power Co, Saudi Oger, Siemens, Sumitomo, Tenaga Nasional Bhd and Tractebel
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The bid deadlines for Saudi Arabia’s first two IWPPs have proved a little ambitious.
The deadline for bidders to submit offers for Marafiq’s 2,400MW and 300,000m3/d power and desalination plant in Jubail has officially been moved from 15 December to the end of February. The extension is to allow developers more time to finalise arrangements with their EPC contractors.
Of the five developer groups that are lining up to bid for the project, three are thought to have EPC teams in place already, while two are still in talks with prospective contractors.
The International Power, Saudi Oger and Sumitomo consortium has appointed Doosan Heavy Industries and Siemens as its EPC contractors. Tractebel, which has teamed up with the Al Bugshan Group to bid for the project, is thought to have signed up GE and Hyundai Heavy Industries.
A third developer group consists of Mitsui & Co, Korea Electric Power Corporation (Kepco), Mitsubishi Heavy Industries (MHI) and Al Zamil Group subsidiary National Power Company (NPC). Mitsui will probably assume the role of EPC contractor.
The two other bidding groups have yet to appoint EPC contractors. ACWA Power, the joint venture between Abunayyan and the Al Muhaidib Group, has teamed up with Itochu Corporation. This group is thought to be in discussions with a number of Turkish companies concerning the role of EPC contractor. A final developer group led by Tenaga Nasional Berhad has not finalised its EPC contractor, although it has given Marafiq assurances that it still intends to bid for the project.
The main problem for developers is the limited number of contractors which can undertake a project of this size. EPC contractors are also stretched by the number of projects currently on the market. In addition to Marafiq, the Shoaiba IWPP has a bid deadline of 8 January (although this is likely to be extended as well) and Kuwait’s 50MIGD Subiya desalination plant has a 26 December bid date. Contractors also faced a 30 November bid deadline for Dubai’s Jebel Ali L2 power and water station.
“It took developers longer than anticipated to formalise their consortia which means they need more time to prepare bids,” said a project source. Only one of the five groups is thought to have been ready to submit an offer by the 15 December deadline.
There is a target date of 2007/08 for project completion.
● The bid deadline for Shoaiba is also likely to be moved, although there is yet to be an official announcement. The Shoaiba project involves construction of a crude oil-fired power and desalination plant with a power capacity of 650-900MW and water capacity of 880,000m3/d. The client is the Water and Electricity Company (WEC). Any extension to the bid deadline will first need to be approved by the WEC board of directors.