Elsewedy and Sinohydro Win $2.2 Billion Rabigh 2 Plant Contract

Elsewedy Electric announced that a joint venture between it and Chinese company Sinohydro won the engineering, procurement, and construction (EPC) contract for the Rabigh 2 independent power plant expansion project in Saudi Arabia, with a total value of $2.2 billion, according to IndexBox.

The plant has a capacity of 2.3 GW and is a combined-cycle gas-fired facility, making it one of the largest projects of its kind in the region. The contract was awarded by Al-Murjan Second for Electricity Company, a special purpose vehicle (SPV) established by ACWA Power and Saudi Energy to develop the project in the Western Region of the Kingdom.

Under the contract, the consortium is responsible for design, engineering, procurement, installation, construction, commissioning, and performance testing, in addition to civil works and connecting the plant to the national grid. Equipment includes six Siemens gas turbines, two steam turbines, and six heat recovery steam generators.

The project aims to achieve commercial operation in May 2029, with overall completion exceeding 39% and recording more than five million safe work hours, according to Elsewedy Electric.

What do these terms mean?

EPC contract: A contract under which the contractor handles engineering, procurement, and construction until the project is delivered ready for operation.

Combined cycle: A power generation technology that uses both gas and steam turbines together to increase efficiency and utilize exhaust heat.

Special Purpose Vehicle (SPV): A company established for a single specific project, used to isolate the project's financing and risks from parent companies.

Commercial operation: The date on which the plant begins regularly producing and selling electricity after passing testing.

National grid connection: Connecting the plant to the public power lines to deliver its output to consumers.