Al-Arrab-SEPCOIII to build $2bn Saudi power plant

Riyadh will house the 2,400 mw power plant

The Saline Water Conversion Corporation (SWCC) has awarded both Riyadh-based Al Arrab Contracting Company and Chinese firm SEPCOIII a letter of reward to build and construct a power plant on Saudi Arabia's Gulf coast.

The power plant will generate 2,400 megawatts, and be situated in Ras Az Zawr. The power plant will burn natural gas and will cost US$2.419 billion according to an Al Arrab executive.

Bearing complications, the power plant should be completed within 42 months.

Al - Arrab - which also has a suite of subsidiary companies across the sector - is no stranger to business coalitions, so the decision to work with SEPCOIII came as no real surprise.

Said Samer Arafa, group executive vice president: "We formed the consortium almost a year ago to target this important project,". Twenty-three companies and controtia submitted their bids for the project in May 2007.

Healthy coalition

The coalition with SEPCOIII Electric Power Construction Corporation is a mutually beneficial one, as the Qingdao-based firm have projects that span a number of projects in nuclear, thermal, gas-fired power, hydropower, wind power project and biological power projects. International clients have included those in India, Indonesia, Nigeria and Singapore, according to Construction Week Online.

"There is still a need to further penetrate the market for speciality and geography," said Samer Arafa in May. "You cannot expect one company that works in one way to be able to manage multi-market. You need modules and specialities."
Saudi Arabia's construction is set to rise by seven percent this year.

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