** 71 companies expressed their interest in Yanbu-4 IWP and RFQ has been issued ** Expressions of Interest for Taif ISTP received ** Appointment of Preferred Bidder for the Rabigh 3 IWP Project Announced **

Shuqaiq Phase-2 IWPP Project


The Shuqaiq Phase-2 IWPP Project (the “Project”) is the second of WEC IWPPs and represents a major development in Saudi Arabia’s water and power sector to help satisfy the increasing national demand for water and power. The Project follows the template of Shuaibah IWPP undertaken in 2005 by Water & Electricity Company (“WEC”). The Project’s power and desalination units will be located adjacent to the existing Shuqaiq-I power and desalination complex 105 km south of Abha and 140 km north of Jazan, on the south-western (Red Sea) coast of the Kingdom of Saudi Arabia (“KSA”).


Shuqaiq – II IWPP has been developed by  Shuqaiq International Water & Electricity Co. which owns 60 % of the Project Company.  The project is currently on full production.


The Project is based on BOO (Build, Own & Operate) basis under a 20 year PWPA agreement for the design, construction, commissioning, testing, ownership, operation and maintenance of a new 850 MW Arabian Heavy crude oil-fired power and 212,000 m3/day (47 MIGD) desalination plant and certain associated facilities (the “Plant”) based on about 80:20 debt to equity project financing.


The electricity and water produced at the plant will supply power to SEC southern grid and water to Abha, Jazan and other southern cities.


The Power Plant will be operated as a base load plant with the capability of following the daily and seasonal load profile of KSA’s southern region.


Plant Configuration


The Shuqaiq  Independent Water and Power Project (“IWPP”) will have three (3) units of Arabian Heavy  crude oil fired boilers, (3) condensing steam turbines and one Reverse osmosis (RO) water unit comprising 16 trains.


Desalination Plant by  MHI


·         Reverse Osmosis (RO) Desalination Technology

·         One water Unit comprising 16 RO trains


Power Plant by MHI


·         Arabian Heavy Crude oil fired boilers – 3 Nos

·         Three Condensing steam turbines, each of 340 MW gross Output


Besides the Power and Water plant, the IWPP plant will include the following facilities:


·         Electrical Special Facilities, which is a 380 kV switchgear sub-station connecting the plant to the main grid network. The 380 kV switchgear is to be developed, financed, built and then transferred to SEC that will operate the facility during the term of the Project.

·         Storage facilities for water;

·         Storage facilities for liquid fuels;

·         Seawater Intake and Outfall structures;

·         Disposal facility for ashes collected from the electrical precipitator; and

·         Fuel supply facilities.


Fuel Supply


The Plant will use Arabian Heavy crude oil as fuel that will be sourced by WEC from Saudi Aramco and supplied by WEC to the Project Company on an energy conversion basis. Arabian Heavy Crude oil (AHC) will be supplied by tanker shipments to new platform facility where it will be unloaded, and transported by the Fuel Supply Facilities into the on-site storage tanks.




Seawater required for desalination and cooling will be obtained through a new dedicated seawater intake and outfall facilities to be constructed as part of the Project.


Plant Availability


Over the life of the Project, the Plant will have an average availability of 93% for power and 97% for water. Under the PWPA no planned outages are allowed during the summer period, since the water and power demand during this period is the highest.


Other Details


Project Company owned 60 % by Developer consortium, 32 % by PIF & 8 % by SEC
Developer consortium comprises ACWA Power (34 %), Gulf Investment Corporation - GIC (20%) & Mitsubishi Corporation (10 %).


EPC Contractor


Mitsubishi Heavy Industries (MHI)


O & M Sub – Contractor


First National Operation & Maintenance Co.


Total Project Cost


SAR 7,012 million (USD 1,870 million)


Project Schedule


Shuqaiq-2 IWPP Milestones


RFP Issue

30- Dec-2005

Bid Submission Date


Signature of Agreements - LLA, PWPA, EPC Contract and O & M


Financial Close


Initial Commercial operation Date (ICOD)


Project Commercial Operation Date (PCOD)



Developers of Shuqaiq Phase-2 IWPP

ACWA Power, Saudi Arabia (www.acwapower.com)
Gulf Investment Corporation (GIC), Kuwait (
Mitsubishi Corporation, Japan (