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Seven companies prequalify for Ras al-Khair plant sale

  • Seven companies prequalify for Ras al-Khair plant sale
Schneider Electric
Idrica

The Saline Water Conversion Corporation (SWCC) of Saudi Arabia has prequalified seven firms, including two consortia and five individual developers, for the planned privatization of Ras al-Khair integrated desalination and power plant, worth approximately $3.9 billion, a source told MEED on Wednesday.

According to the source, the prequalified businesses are:

  • Acwa Power (local)
  • Asian strategic consortium (undisclosed)
  • China Power International Holding / Ajlan & Bros Energy Company (local)
  • Engie (France)
  • Jera (Japan)
  • Marubeni Corporation (Japan)
  • NTPC (India)

SWCC could issue the request for proposals for the scheme towards the end of January, although it has not yet been finalized.  

Saudi Arabia’s National Centre for Privatisation & PPP (NCP) received the prequalification applications on 15 October for the scheme.

The largest desalination plant in the world, with a capacity of over one million cubic metres per day is located in the Ras al-Khair plant.

The desalination facility is the first and biggest asset SWCC to be sold.

In July 2020, the scheme received expressed interest from a total of 37 investment companies and utility developers.

According to MEED, the future sale structure is expected to be like other independent water and power projects (IWPPs) in Saudi Arabia, where the majority share will be offered to private investors.

BNP Paribas was appointed by SWCC in 2017 as financial adviser for the planned privatisation of the Ras al-Khair power and water plant. The UK’s Clifford Chance and Atkins are the legal and technical advisers respectively.

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