Elsewedy and Sinohydro Win $2.2 Billion Rabigh 2 Plant Contract
A consortium of Elsewedy Electric and Sinohydro won a $2.2 billion engineering, procurement, and construction contract for the expansion of the 2.3 GW Rabigh 2 power plant in western Saudi Arabia.
The joint consortium between Egypt's Elsewedy Electric and China's Sinohydro won a $2.2 billion engineering, procurement, and construction (EPC) contract for the expansion of the Rabigh 2 independent power plant in Saudi Arabia, according to Egypt Oil & Gas.
The plant has a capacity of 2.3 GW and is a gas-fired combined-cycle power plant located in the western region of Saudi Arabia, with commercial operation scheduled for May 2029.
The contract was awarded by Al-Murjan Second for Electricity Company, a special purpose vehicle owned by ACWA Power and Saudi Energy.
The contract represents an extension of Egyptian-Chinese cooperation in regional energy infrastructure projects at a time when Saudi Arabia is expanding its power generation projects to meet growing demand.
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 energy production efficiency.
Special Purpose Vehicle: A company created for a specific single project to handle its financing and management, rather than having the parent company bear the risks directly.
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