Arab Finance: The joint venture (JV) between Egypt-based power contractor Elsewedy Electric PSP and China-based engineering firm Sinohydro has signed an engineering, procurement, and construction (EPC) contract for the 2.3-gigawatt Rabigh 2 Independent Power Plant (IPP) Expansion Project in Saudi Arabia, as per a press release.
Awarded by Saudi Arabia-based power developer Al Mourjan Two for Electricity Company, the gas-fired combined-cycle project has a total value of $2.2 billion and is scheduled to begin commercial operations in May 2029.
As the signing moves the project into full-scale execution, following work carried out under a previously issued Limited Notice to Proceed, overall progress has exceeded 39%, with more than five million safe man-hours recorded to date.
“Together with Sinohydro, we bring the full scope of this project, from engineering through to commissioning under one accountable team, and we are fully mobilized to take Rabigh 2 from contract to commercial operation, building on the strong partnership we have built with the developer and off-taker throughout this process,” Hesham Hegazy, CEO of Elsewedy Electric PSP, said.
Under the agreement, the partners will handle design, engineering, procurement, erection, construction, commissioning, and performance testing. Their responsibilities also cover associated civil works and connection to the national grid.
The plant will incorporate six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines in a 2× (3×3×1) configuration. Supporting equipment includes six heat recovery steam generators, a cooling tower, and a bypass stack and diverter damper to enable simple-cycle operation. The scope also encompasses mechanical, electrical, instrumentation, and control systems.
Commenting on Sinohydro’s role, Peng Gang, President of PowerChina MENA, stated: “This contract signing reflects the confidence our client has placed in the joint venture's technical capability and delivery track record. Sinohydro is proud to bring its global EPC experience to this partnership with Elsewedy Electric PSP, and together we are committed to executing every element of this project's scope – safely, efficiently, and to the highest quality standards – as one integrated team.”
Meanwhile, Samir J Serhan, CEO of Acwa, commented: “Rabigh 2 IPP Expansion is an important addition to Saudi Arabia’s power system, providing the reliable and flexible generation capacity needed to support the kingdom’s growing electricity demand. Reaching this milestone reflects the strength of the partnership between the project’s developers and our EPC partners, as well as the disciplined execution already underway on site.”
Once operational, the expansion is intended to serve rising industrial, commercial, and residential electricity demand across Saudi Arabia.
