Saudi Arabia is planning to privatise the Saline Water Conversion Corporation (SWCC) as the first step in restructuring its water and power sector.

"The SWCC is in discussion with the Supreme Council to privatise the corporation. We hope a decision will be taken this year," SWCC deputy governor for projects and technical affairs Ahmed Al Mudaiheem said.

He made the remarks on the sidelines of the 'Power in the Middle East' conference held in Abu Dhabi at the end of May.

The official said privatisation could mean offering part equity to a foreign or local partner.

SWCC, formed in 1974, is government-owned and is responsible for desalination of some 2.8 million cu m of water per day and 4,000 megawatts of electricity.

Dr Fareed M. Zedan, governor of the Electricity Services Regulatory Authority of Saudi Arabia, told delegates that following the creation of the Saudi Electric Company (SEC), many initiatives towards privatisation would take shape in the coming months, which would include the country's first independent power project (IPP) as well.

Zedan said the SEC was ready for bids and the government was cooperating with the authority. Many projects in the water and power sector would be privatised. Private partners would be invited for electricity generation projects and not transmission.

Cummins on standby for tower

Al Khobar

Cummins Power Generation has recently installed two standby generating sets in the AB Building in Al Khobar.

Towering over the Dammam to Khobar highway in Eastern Province, the office block is the headquarters of Ahmad N Albinali and Sons. The building has a fully-equipped gymnasium, restaurant, 24-hour monitored security system, three hi-tech elevators and car parking for 120 vehicles.

Located next to the car-park entrance is a fully soundproofed concrete plant which houses the two Cummins CP1000-6 standby generating sets.

The sets are powered by QST30G2 Cummins diesel engines, while digital paralleling and synchronising are provided by Cummins PowerCommand Paralleling Digital MasterControl.

Volvo team tours Kingdom

Jeddah: A top team from Volvo recently concluded a two-day trip to Saudi Arabia.

Leading the Swedish team were president of Volvo Car International, Bengt Ovlinger, Katarina Ohlsson, director of finance, and Graham Carmichael, regional director.

During the visit, the executives held talks discussions with Zahid Tractor, the exclusive agent in the kingdom for more than 20 years.

The Swedish company recently announced an investment of $5 billion over the next five years to boost its worldwide production capacity by 50 per cent through new model expansion.

"My visit comes as part of our commemoration of Volvo's 75th anniversary to further enhance our relations with our business partners in the region," said Ovlinger. "Also, as our largest dealership and one of most successful business partner, we are ready to take our relationship to the next step."

"We've had an outstanding first four months with sales growth of 41 per cent," said Yousuf Khaja, Volvo general manager at Zahid Tractor. "Next year, we are expecting greater results with the expansion of our product offering. In 2003 customers in the kingdom will see the new Volvo XC90 which Volvo's true 4X4 combining elegance, performance, and safety.''

Work under way on Riyadh gate

Riyadh: Work is under way on the Riyadh Western Gate and is scheduled to be completed by end-2003.

The project, located at the main entrance of Riyadh city from the west direction of Riyadh-Makkah road, is being carried out in three phases.

The first phase calls for the construction of four 26-m tall tower and includes adjacent parking lots and landscaping. The four towers have already been completed and filling works around the project have started.

The second phase will cover the construction of a mosque, digging of water wells, construction of a checkpoint and housing complex, water and electricity extensions, air-conditioning and landscaping.

The third phase calls for the construction of souvenir shops.

$2.9bn contracts signed

Riyadh: The Saudi Commerce Ministry has finalised 956 contracts worth SR11.13 billion ($2.93 billion) since the beginning of the current financial year till the end of May for a number of government departments.

The projects included 406 maintenance and operation contracts (SR3.48 billion), 257 municipal and sewage projects (SR4.15 billion) and 112 school building projects (SR981 million). The contracts for hospital buildings were worth SR385 million and road projects SR300 million.