State controlled Saudi Electricity Co (SEC) has invited local and foreign investors to express interest in a 1,800 megawatt oil fired power plant in the kingdom, where power demand is rising fast.
The planned conventional steam power plant in al Qurayah, south of the eastern city of Khobar, will use heavy fuel oil as a feedstock, SEC's Chief Executive Ali al Barrak said on Tuesday.
Speaking to Reuters, he said: "This plant is under the Independent Power Project plan aimed to involve private sector in power production in the kingdom. Requests for proposals (RFPs) will be before the end of this year."
The deadline for the expression of interest is May 31, he said.
Saudi Electricity will buy all the power produced by the plant from the winning consortium which will run it on a build own operate basis, he said.
Barrak said: "After pre qualification bidders will be asked to form consortiums and then they can make financial bids and the best bidder will be selected for talks to complete procedures. We aim to start production at the plant in 2015."
Al Qurayah plant is the third of six planned IPP power plant projects in the kingdom. The six schemes should add 11,000 megawatts of capacity.
Power demand in the world's largest oil exporter is rising at an annual 8 percent and is expected to triple to 121,000 megawatts from 40,000 MW currently, government officials say. (Reuters)For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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