Two teams submitted their best and final offer (Bafo) for the multi-utilities contract on 30 August
The Red Sea Development Company (TRSDC) is evaluating the final proposals it received on 30 August for the contract to develop the utility infrastructure that will cater to the Red Sea Project in the Western Region of Saudi Arabia.
TRSDC received the Bafo from two bidders, following a minor change in scope.
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Two teams submitted bids for the contract in May. One group is led by Saudi Arabia-based utility developer Acwa Power and the other by France’s Engie.
A third group, which initially comprised the UAE’s Masdar and local Saudi Electricity Company (SEC), did not bid.
Instead, Masdar joined the Engie-led consortium, which also includes local companies Saudi Tabreed and Miyahuna.
According to a source with knowledge of the bidding process, TRSDC is expected to award the multi-utilities infrastructure contract before the end of the year.
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By GlobalDataProject scope
The scheme, which will be developed on a public-private partnership (PPP) basis, covers power generation, desalination, wastewater treatment and district cooling.
TRSDC said it expects peak power and water demand to reach 210MW and 30,000 cubic metres a day (cm/d) respectively in the first phase of the project. This will further increase to 360MW and 50,000 cm/d when the project reaches its second phase.
The Red Sea Project will welcome its first guests by the end of 2022. The first phase of the development will include 14 luxury hotels, offering 3,000 rooms across five islands and two inland locations. It will also include entertainment facilities, an airport and the necessary supporting logistics and utility infrastructure.
Other gigaprojects
Two other Saudi gigaprojects launched by Saudi Arabia’s Public Investment Fund (PIF) plan to develop multi-utilities packages based on the PPP model.
Two groups led by Acwa Power and Alfanar, another Saudi-based utility developer, submitted a bid on 30 June for the contract to develop several utilities, catering to Saudi Arabia’s 334 square-kilometre Qiddiya entertainment city development. The package includes power generation, water desalination, sewage treatment and water transmission networks.
MEED understands that luxury tourism project Amaala on Saudi Arabia’s northwestern coast expects to tender a multi-utilities contract for the development within the year.
This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here
