Project to become operational before June 2014, will boost production at Gulf's largest utility.
The Saudi Electricity Company (SEC) signed a SR6.9bn ($1.8bn) contract with a consortium of firms to increase electricity output in the kingdom on Tuesday.
Saudi firm, Arabian Bemco Contracting and Korean company Doosan Heavy Industries & Construction signed the deal for the expansion of services at the Qurayat power plant, Arab News reported.
Saleh Al-Awaji, deputy minister of electricity and vice chairman of SEC, told the paper that out of three bidders, the consortium had submitted the lowest bid.
The project is to become operational before June 2014 and is expected to add 1,241 MW to the Qurayat plant, the largest utility in the Gulf by market value.
Arabian Bemco is a leading contractor for power and industrial projects in the region, the paper reported.