Bid & Tender

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Project Summary
Project Name: WEC’s Rabigh 3 Independent Water Project (IWP)
Facility Type: Independent Water Project (IWP)
Client: Saudi Arabia’s Water & Electricity Co. (WEC)
Budget (US $): 750,000,000
Project Initiation: Not Given
Project Completion:: Dec 05, 2022
Status: EPC Awarded,
Location: Rabigh
Project Current Status

SEPCO III, China has announced that the plant performance test of the Rabigh 3 IWP has been successfully completed. During the performance test, each system operated stably and all parameters were qualified, which was recognized and praised by the owner. The project is being procured under a 25-year BOO contract. The water output will cater to the water demand of Makkah al-Mukarramah and Jeddah. (November 2021)

Project History
  • Tenders have been issued for financial advisory contracts for two projects – Rabigh IWP and Jubail IWPP. Consultants have time until November to submit bids. (November 2016)
  • SWCC aims to begin the procurement process for the desalination plant in Q1, 2017. The plant will be delivered through a public-private partnership (PPP) model. (January 2017)
  • SWCC awards contract to provide advisory services for its planned Rabigh IWP. The lead adviser is Banque Saudi Fransi. Fichtner Engineering and Consulting of Germany has been appointed as the technical adviser, DLA Piper and Alderbrook, both of UK, as legal adviser and financial adviser respectively. (March 2017)
  • Saudi Water & Electricity Co. (WEC) has invited EoIs by 31 August, 2017 for the development of the project. WEC will select a consortium to develop, finance, procure, implement, operate and maintain the desalination facility. SWCC and SEC each own a 50% shareholding in WEC. (August 2017)
  • EoIs for the IWP have been submitted by around 55 local and foreign firms. Local companies that submitted EoIs include: ACWA Power, Advanced Water Technology Co, AlBawardi Group, Nesma Holding, and Saudi Industrial Services Co (SISCO). Foreign companies that submitted EoIs include: Abu Dhabi National Energy (Taqa), Acciona Agua SA of Spain / Abdul Latif Jameel Commercial Development Company Ltd of Saudi Arabia, Doosan Heavy Industries & Construction of South Korea, Engie of France, Marubeni of Japan, National Power Co. of UAE, Orascom Construction of Egypt, Shapoorji Pallonji of India, and Tecnicas Reunidas of Spain. (September 2017)
  • WEC has received the pre-qualification entries from about ten companies for the IWP. (December 2017)
  • Successful developers have been notified of their pre-qualification for the planned IWP. Companies, who have submitted their Statement of Qualification (SOQ) and are qualified, include - Acwa Power, ENGIE, FCC Aqualia, JGC Corporation, Malakoff, Marubeni, Suez Group, Valoriza, and Veolia. (January 2018)
  • The pre-qualified companies have been invited to submit bids by 1 July, 2018 for the planned development of 600,000 cubic metres a day (cm/d) Rabigh 3 independent water project (IWP). (February 2018)
  • Proposals have been received for the planned development of Rabigh 3 IWP. The bidding firms/consortiums are - ACWA Power, FCC Aqualia S.A / Haaco / Nesma / Cobra, Marubeni / Acciona / Abdul Latif Jameel / Rawafid, Valoriza Gestion S.A.U / Al Jomaih Holding Co / Al Blagha Holding for Investments Co, and Veolia / Marafiq / Ammwal / Advance Water Technology. (July 2018)
  • Acwa Power submitted the lowest levelised water cost bid of 199.2 halalas ($0.53) per cubic metre (hals/m3). The second lowest tariff of 202.1 hals/m3 submitted by the consortium led by Marubeni of Japan. (September 2018)
  • WEC is set to formally select the preferred bidder for the planned development of 600,000 cubic metres a day (cm/d) Rabigh 3 independent water project (IWP). Acwa Power had submitted the lowest levelised water cost bid of 199.2 halalas ($0.53) per cubic metre (hals/m3). (November 2018)
  • WEC seeks to appoint “Supervisory Consultant” for supporting its upcoming Desalination/Sewage treatment Projects for overall Project Construction Management, including facilitating all phases of projects concurrently, Commissioning, Testing and Plant Commercial Operation Declaration activities. Proposals are due to be submitted by 19 November, 2018. (November 2018)
  • The consortium of International Company Water and Power Projects (ACWA Power) and Saudi Brothers Commercial Company has been appointed as the preferred bidder for the Rabigh 3 desalination plant and associated electrical special facilities. The consortium comprising Marubeni Corporation, Abdul Latif Jameel Commercial Development Company, Acciona Agua and Rawafid Alhadarah Holding Co. has been appointed as the Reserve Bidder. Acwa consortium submitted the lowest levelised water cost bid of 199.2 halalas ($0.53) per cubic metre (hals/m3) while Marubeni consortium submitted the second lowest tariff of 202.1 hals/m3. (November 2018)
  • WEC has signed the agreement with the winning consortium – ACWA Power International and Saudi Brothers' Commercial Company – for its planned development of Rabigh 3 IWP. (December 2018)
  • Firms have been pre-qualified for the “Supervisory Consultant” role for supporting WEC’s upcoming Desalination/Sewage treatment Projects. They are: Atkins Global, Ayesa, Fichtner, Ilftecon, Pöyry, Tractebel engie, TYPSA, and WSP. (January 2019)
  • Acwa Power and its consortium partner Saudi Brothers Commercial Company (SBCC) has signed senior financing and hedging agreements for the SR2.62 billion ($700 million) Rabigh-3 IWP. A new entity, Rabigh Three Company (RTC) has been established with Acwa Power as the 70 per cent stake holder and the rest by SBCC for ownership of the Rabigh 3 IWP Plant. The EPC contract for the project was awarded to a consortium of Sepco III (Power China), Abengoa and Sidem (Veolia). The operations and maintenance agreement was signed with Rabigh Water Production Services Company, an affiliate of First National Operations & Maintenance Company (Nomac). (March 2019)
  • Abengoa has exceeded 85% progress in the construction of Rabigh 3 IWP, 600,000 m3/d reverse osmosis desalination plant. (February 2021)
  • GE Renewable Energy’s Grid Solutions has completed a landmark turnkey contract for a substation to power Rabigh-3 salt water desalination plant. For the project, Grid Solutions drew on several of its internal GE teams, including SWS (Software Solutions) Saudi Arabia, for the internal units of the substation. GE’s Grid Automation facility in Dammam, Saudi Arabia supplied protection and SAS systems. GE’s Grid Solutions Project Management, Site, Commissioning, EHS and Quality Teams in Saudi Arabia successfully led the work on the 380/110 kV substation. The original agreement for the contract was signed by GE’s Grid Solutions and Shandong Tiejun Electric Power Engineering Company alongwith project ownership under Rabigh Three Company. As per the deal, GE’s Grid Solutions completed the design, civil works, equipment supply, installation, testing and commissioning of the 380/110 kV substation despite Covid-19 challenges. (June 2021)
  • Abengoa has announced that it has produced the first desalinated water, at the Rabigh 3 desalination plant. The commissioning of this plant is scheduled for the last quarter of 2022. (July 2021)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Not yet tendered
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Acwa Power
  • FCC Aqualia S.A / Haaco / Nesma / Cobra
  • Marubeni / Acciona / Abdul Latif Jameel / Rawafid
  • Valoriza Gestion S.A.U / Al Jomaih Holding Co / Al Blagha Holding for Investments Co.
  • Veolia / Marafiq / Ammwal / Advance Water Technology
  • Acwa Power
  • FCC Aqualia S.A / Haaco / Nesma / Cobra
  • Marubeni / Acciona / Abdul Latif Jameel / Rawafid
  • Valoriza Gestion S.A.U / Al Jomaih Holding Co / Al Blagha Holding for Investments Co.
  • Veolia / Marafiq / Ammwal / Advance Water Technology
  • Acwa Power
Related Projects
SWPC’s Jubail Independent Water Projects (IWPs) – Overview
SWCC’s Jubail, Rabigh Independent Water and Power Projects – Overview
Project Schedule

January 2018: Short listing of EPC

February 2018: ITB for EPC

July 2018: Bids Submission EPC

November 2018: Preferred bidder appointed for EPC

Q4, 2022: Expected start-up and commissioning

Project Scope

The project scope involves the development of an independent water project (IWP) at Rabigh.

 

The project – Rabigh 3 IWP – will  have a capacity of 600,000 cubic metres a day (cm/d) and use reverse osmosis (RO) technology.

 

WEC will select a consortium to develop, finance, procure, implement, operate and maintain the desalination facility.

Project Structure:
The project is owned, operated and managed by Saudi Arabia’s Water & Electricity Co. (WEC). The state-owned company is offering a 25-year concession to the developer or consortium to sell the plant's production under a water purchase agreement with the Saudi government. SWCC and SEC each own a 50% shareholding in WEC. Banque Saudi Fransi has been appointed as lead advisor for the project, while DLA Piper Middle East will serve as legal advisor. Senior financing and hedging agreements for the SR2.62 billion ($700 million) signed for the project. The transaction is financed through limited recourse ring fenced project financing with Natixis, MUFG, Samba and Riyad Bank being the initial mandated lead arrangers. In addition, Riyad Bank also provided an equity bridge loan for the transaction.
Mr. FehiedFahad Al Shareef
Designation: Governor
Department: SWCC
Phone: +966 463 0503
Fax: +966 465 0852
Email: rdc@swcc.gov.sa