WEC Issues Request for Expressions of Interest for Shuqaiq Phase 3 AND Yanbu Phase 4 Independent Water Projects
WEC Issues Request for Expressions of Interest for Yanbu Phase 4 Independent Water Project

24th October 2017

 

Request for Expressions of Interest for Yanbu Phase 4 Independent Water Plant

 

Vision 2030 recognises the critical importance of ensuring the future reliable provision of water supplies for the well being and quality of life for the Kingdom of Saudi Arabia ("KSA").

 

To meet the Water demand, Water & Electricity L.L.C (“WEC”) intends to commission a series of new Independent Water Plants (“IWPs”).

 

WEC is therefore pleased to invite expressions of interest (“EOI”) in respect of the development of a new IWP with net potable water capacity of 450,000 m3/day, to be designed using reverse osmosis seawater desalination technology. The IWP will be located near the city of Yanbu, on the Red Sea coast, approximately 220 km west of Medina, KSA, and will be powered by electricity from the high voltage grid (the “Project”).

 

WEC is also considering linking the new IWP, with the potential acquisition of one or more of the existing Yanbu Plants: Yanbu phase 1 [Commission Date “CD” in 1981], Yanbu phase 2 [CD in 1998], Yanbu RO [CD in 1998] and Yanbu Expansion [CD in 2013] that are owned by the Saline Water Conversion Corporation “SWCC” (“the Bundle”). Yanbu phase 1 is a combined power and water Plant with installed capacities for water and power of [100,000 m3/day] on a MSF basis and [357 MW]. Yanbu phase 2 is a combined power and water Plant with installed capacities for water and power of [144,000 m3/day] on a MSF basis and [163 MW]. Yanbu RO Plant is with [128,000 m3/day] of installed water capacity. Yanbu Expansion Plant is with [68,000 m3/day] of installed water capacity on a MED basis.

 

WEC will conduct a competitive process to select a developer or developer consortium for the development, financing, engineering, procurement, construction, implementation, operation and maintenance of the Project/Bundle, together with associated infrastructure and facilities. Under a 25-year concession Agreement, the project company to be incorporated to develop the Project/Bundle will sell the entire water desalination/water desalination and power capacity and output to WEC under a Water/Power and Water Purchase Agreement (“WPA / PWPA”). WEC’s obligations under the Purchase Agreement will be supported by a credit support agreement from the Government of KSA.

 

WEC requests the following:

1. Interested parties should express their interest to participate in the tender process by 23 November 2017. Interested parties should deliver their EOI in [both hard copy and] electronic copy in PDF format to:

 

  • Mr. Khaled bin Zwaid AlQureshi,

    CEO,

    Water & Electricity L.L.C,

    Floor 24, Kingdom Centre,

    P.O.Box: 300091, Riyadh 11372, Kingdom of Saudi Arabia.

    Email address: wecyanbu4@wec.com.sa

     

  • Mr. Duncan Allison,

    Managing Director and Head of Power and Infrastructure,

    Sumitomo Mitsui Banking Corporation DIFC Branch – Dubai,

    Building One, Floor 5, Gate Precinct, Dubai International Financial Centre,

    P.O.Box: 506559, Dubai, United Arab Emirates.

    Email address: duncan_allison@ae.smbcgroup.com

     

2. The EOI should specify as a minimum the following information:

 

  • Name of the interested party;

     

  • Name and contact details (postal address, telephone number, and e-mail address) for the appropriate point of contact (“Point of Contact”) to whom all future correspondence will be addressed; and

     

  • Where the interested party is considering potential consortium partners, an indication of such intention and details of potential consortium partners (to the extent it is known).

 

Following submission of the EOI, WEC may, in its sole discretion, issue a confidentiality undertaking to each Point of Contact. Parties wishing to participate as a sole developer or lead developer must return executed versions of the confidentiality undertaking in order to receive a request for qualification (“RFQ”) document, which WEC expects to issue in December 2017. Responses to the RFQ should only be submitted by developers seeking qualification as a sole developer, or lead developer as part of a developer consortium. The RFQ will include further information, including a description of the Project, an outline of the tender process and eligibility criteria for pre-qualification of interested parties.

 

WEC is being advised by:

  • Sumitomo Mitsui Banking Corporation (DIFC Branch) as Lead and Financial Adviser;

     

  • DLA Piper Saudi Arabia as Legal Adviser; and

     

  • ILF-Tecon & Partners Engineering PSC as Technical Adviser.