Suez Energy International (SEI), in a consortium with Gulf Investment Corporation and Arabian Company for Water and Power Projects has signed the BOOT (build, own, operate, transfer) contract for a 2,750 MW and 800,000 cu m/day Independent Water and Power Project (IWPP), located in Jubail in northeastern Saudi Arabia.

The consortium will own 60 per cent of the project, which will involve the construction and operation of the world’s largest IWPP.
The Marafiq IWPP was awarded by the Power and Water Utility Company for Jubail and Yanbu and will be built to supply water and electricity to industrial and non-industrial customers in the Jubail Industrial City and the Eastern Province. The sale of the plant’s entire energy and water output to the offtaker Marafiq is guaranteed through a 20-year power and water purchase agreement.
The total project costing estimated at $3.4 billion, will be funded by a mix of debt and equity in the ratio of 82:18 with the contract expected to generate a total turnover of 8.5 billion, over 20 years.
“The SEl teams technically-innovative approach proved to be an important factor in Suez’s success and differentiates us from the competition in the region. This huge project contains organisational, technological, financial and commercial features that result in a tariff giving considerable value to the offtaper Marafiq,” says Dirk Beeuwsaert, CEO of SEI.
“Winning this contract strengthens our reputation as a successful developer in the region. The group is now the leading private developer in the Middle East managing 8,200 MW of installed power capacity.”
The Marafiq project represents approximately 10 per cent of current total installed capacity in Saudi Arabia of 29,000 MW, which is planned to increase to 80,000 MW by 2020 to meet the rapidly increasing energy demand in Saudi Arabia. The Marafiq IWPP will also be a substantial contributor to the country’s water supply when it comes online in July 2009.