Acwa Power selected for Saudi Arabia’s Red Sea utilities project

MEED    18 September 2020 (Last Updated September 18th, 2020 10:11)

Acwa Power selected for Saudi Arabia’s Red Sea utilities project

A team led by Saudi utilities developer Acwa Power has been selected as the preferred bidder for the contract to develop the multi-utilities infrastructure that will cater to the Red Sea Project in the Western Region of Saudi Arabia, according to two sources with knowledge of the project.

The Red Sea Development Company (TRSDC) received the best and final offer on 30 August from two bidders, following a minor change in scope.

The other bidding team was led by the UAE’s Masdar and France’s Engie and included local firms Saudi Tabreed and Miahona Company.

Comprehensive Red Sea Project scope

The scheme, which will be developed on a public-private partnership (PPP) basis, covers solar power generation, electricity storage, water desalination, wastewater treatment, networks, district cooling and solid waste treatment.

TRSDC has 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 utilities infrastructure.

Further bids by Acwa Power

Two other Saudi gigaprojects launched by Saudi Arabia’s Public Investment Fund plan to develop multi-utilities packages based on a PPP model.

Two groups led by Acwa Power and Alfanar, another Saudi-based utilities 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 luxury tourism project Amaala, on Saudi Arabia’s northwestern coast, expects to tender a multi-utilities contract for the development within the year.