Riyadh-based ACWA Power Projects has confirmed its participation in the bidding process for the latest Saudi independent water and power project (IWPP), in Ras az Zawr on the central east coast, as part of a consortium.
Arun Shori, vice president for project finance at ACWA, said the consortium had “altered a little” from the last bid, when ACWA, along with the Gulf Investment Corporation (GIC) and Mitsubishi, was awarded the US $1.9 billion Shuqaiq IWPP.
Shori said that insurance, the last outstanding issue for the Shuqaiq project, had been closed out and ACWA would be making its first drawdown payment on 31 May, as per schedule.
Statements of qualification (SOQs) for the Ras az Zawr project must be received by the Saudi Water and Electricity Company (WEC) by 30 April. The development is set to cost US $3 billion and will add 1 million m³ of water per day and upto 1100 MW of power.
Shori said there was an “extensive pipeline” of power and water projects in Saudi Arabia that could involve US $15-20 billion of investment in coming years. He underlined the Saudi government’s commitment to privatisation but expected tariffs to significantly increase in future.
“The government is looking to alter the tariffs. At the moment the tariffs are quite subsidised but sooner or later people will have to start paying the actual cost of power or water,” he said.
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