The project, to be developed on a BOO (build, own, operate) basis, will be located at Qurayyah, on the eastern coast of Saudi Arabia adjacent to existing SEC facilities.
The project, the third of its type, and the largest IPP being developed by SEC, represents another major development in the Saudi power sector to help meet the rapidly increasing power demand in Saudi Arabia.
It will deliver 3,927 MW of electricity to SEC under a 20-year power purchase agreement (PPA) commencing on June 30, 2014.
The project company — Hajr Electricity Production Company (Hajr) — was established with the winning consortium owning 50 percent and SEC owning the remaining 50 percent.
The consortium includes Samsung C&T and MENA Fund.
Yousef Al-Ouhali, executive managing officer of the Hajr, said: "Qurayyah IPP is a greenfield independent power project with a net generation capacity of 3927 MW. The design production capacity will make it the largest IPP combine cycle gas-fired power plant in the world once completed".
The project is being funded with $730 million of equity capital funded through an equity bridge Murabaha facility provided by Arab National Bank, Banque Saudi Fransi, The National Commercial Bank, Samba Capital, Saudi British Bank, and Saudi Hollandi Bank and 2,075 million of debt funded by Arab National Bank, Banque Saudi Fransi, Hong-Kong Shanghai Bank, Korea Export Import Bank, Kreditanstalt Fur Wideraufbau, The National Commercial Bank, Samba Capital, Saudi British Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and US Export Import Bank.
Qurayyah IPP comprises six identical groups of equipment, each delivering net output of 654.5 MW.
Each group comprises two gas turbines (GTS), two heat recovery steam generators (HRSG) and one steam turbine.
The Qurayyah IPP Plant is designed and will be constructed to comply with all applicable environmental laws, guidelines, regulations and standards set by World Bank, IFC and Saudi Presidency of Meteorology and Environment (PME).
Siemens will provide all major equipment and electrical systems and Samsung C&T will Engineer, Procure and Construct the project as the EPC contractor to deliver the project.
Once completed, the plant will be operated by The First National Operation & Maintenance Company (NOMAC) a subsidiary of ACWA Power under a long-term operation and maintenance contract with Siemens providing parts and services for the gas turbines under a long-term service Agreement (LTSA) with NOMAC.
Al-Ouhali said: "We are proud to be the project owner of Qurayyah IPP not only because it is the world's largest combined cycle IPP, but most importantly the project will provide major economic advantage for Saudi Arabia.”
He added: “First: The project was bid with the lowest tariff possible (21 percent lower than the nearest bidder), thus delivering over SR2 billion of savings over 20 years to the economy of the Kingdom. Second: The project is designed with the highest thermal performance possible, more than 52 percent efficiency, or 14 percent more efficient than the traditional steam power plant exist in the Kingdom now, which makes it the most efficient in Saudi Arabia. This high efficiency will save the Kingdom more than SR2 million per day in fuel cost, using the present world natural gas price. Third: This high efficiency will also save the Kingdom's natural resources, as the project will save more than 160 million cubic feet of natural gas per day of equivalent MW production.”
The Qurayyah IPP plant is designed and will be constructed to comply with all applicable environmental laws, guidelines, regulations and standards as per World Bank, IFC and Saudi Presidency of Meteorology and Environment (PME).
The project will substantially increase power supplies to the Saudi power grid.
