Saudi Arabia invites EOIs for Yanbu 4 water desal project near Makkah

Saudi Arabia invites EOIs for Yanbu 4 water desal project near Makkah
The Yanbu 4 IWP is located 140km from Makkah [representational image].
Published: 1 April 2019 - 6:45 a.m.
By: Neha Bhatia

Saudi Arabia’s Water and Electricity Company (WEC) is inviting expressions of interest (EOIs) to work on the Yanbu 4 Independent Water Project (IWP) in Ar Rayyis, 140km west of Madinah, which will be operated using reverse osmosis seawater desalination systems.

WEC said the project on the Red Sea coast will be powered by the area’s high-voltage network. The agency is set to conduct a “competitive process” to select a single developer or a consortium for the plant’s development, financing, procurement, implementation, operations, and maintenance.

Upon launch, the desalination plant will have a daily potable water capacity of 450,000m3, with the selected project developer to sell its capacity and output to WEC under a water purchase agreement under a concession of 25 years.

Sumitomo Mitsui Banking Corporation’s DIFC branch is involved with WEC as the project’s lead and financial advisor, whilst DLA Piper Middle East and ILF Consulting Engineers are respectively working as legal and technical advisors.

Interested parties are require to submit their EOIs to participate in the tender process by Thursday, 11 April, 2019. Those organisations that “responded to the request for [EOIs] issued by WEC on 24 October, 2017 are not required to resubmit an EOI, unless [they] wish to update the point of contact”, the utilities company said.

PDFs must be emailed to Khalid bin Zwaid Al Qureshi, chief executive officer of WEC, whose email ID is wecyanbu4@wec.com.sa. Duncan Allison, managing director and head of power and infrastructure at Sumitomo Mitsui Banking Corp’s DIFC branch in Dubai must also be emailed on duncan_allison@ae.smbcgroup.com.

According to WEC’s website, 51 companies had submitted EOIs in response to its October 2017 call for the documents.

This extensive list included Saudi Arabia’s Abdullatif Jameel Commercial Development Co, Alblagha Holding Co, Almashariq, Bahr Rawafid Holding Co, Masco Group, SETE Saudia, Suikime – Saudi Brothers Commercial Co, Moya, and Valoriza Spanish Saudi.

Saudi Arabian construction giants Saudi Binladin Group and Nesma Holding Co had also submitted EOIs at the time, in addition to the UAE’s Utico and Masdar; France’s Engie; and Spain’s Abengoa, Acciona Agua, FCC Aqualia, Tecnicas Reunidas, and Tedagua and Cobra.

Asian heavyweights also sought work on Yanbu 4 IWP, with the list featuring India’s VA Tech Wabag and Adani Infra; China’s Datang Environment Industry Group Co and Shanghai Electric Group; and Korea’s Doosan Heavy Industries & Construction.

Egypt’s Orascom Construction and America’s Bechtel are also understood to have submitted EOIs in response to the October 2017 call.

For additional details about the EOI’s requirements, please visit WEC’s website, www.wec.com.sa.

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