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Shuqaiq Water and Electricity Company adds 340MWh to Saudi grid meeting demand for power and water in Southern region

Saudi Arabia: Saturday, May 01 - 2010 @ 09:37

The first COD will add 340 MWh to the Saudi Southern Region power grid. The project consists of three construction phases and, when complete, will reach a full production capacity of 850 MWh of electricity and 212,000m3/day to be supplied to the Jazan and Asir areas. The Shuqaiq project is a part of the country’s efforts to meet the increasing demand of power and water in the Southern Region of Saudi Arabia and is located approximately 130 km west of Abha.

Eng. Abdul Aziz Al-Mahdi, the CEO of Shuqaiq Water and Electricity Company, said:

“Through the diligent efforts of the company, the hard work of our partners, our employees and full compliance with the planned project timeline we are proud to announce the completion of the first COD thus adding 340 MWh to the power grid in the Kingdom. This is a major step in meeting its objectives of completing all requirements on time and within the set budget.”

“Shuqaiq is an IWPP built in accordance with the Saudi Presidency of Meteorology and Environment standards and regulations as well as World Bank standards and the Kyoto Protocol in addition to achieving 22 million working hours with no injuries or fatalitiesþ. Also, I am proud that, during the commissioning period, the project produced more than 700,000m3 of water and more than 312,000 MWh of electricity which were supplied to the water network and power grid in the Kingdom,” he added.

Shuqaiq Water and Electricity Company was established as a closed Joint Stock Company where the Saudi Public Investment Fund (PIF) owns 32% and the Saudi Electric Company (SEC) owns 8% with the remaining share belonging to ACWA Power International, Gulf Investment Corporation and Mitsubishi Corp. The project is structured on a concession or utility outsourcing contract model and is the third IWPP project in the Kingdom. This project was initiated by the Water and Electricity Company in line with the Supreme Economic Council decree No. 5 / 23 for the year 1423 (2002) which identified the regulatory framework for private sector participation in these types of projects.

ACWA Power International, who is the lead developer of the project, began construction work in March 2007. This is the fourth of its seven IWPP/IPP/IWSP projects in the Kingdom. Once all the projects are completed a total full production capacity of 2.3 million cubic meters per day and 6,200 MWh of electricity will be available. The seven projects are spread across the eastern, western and southern regions of the kingdom.

Mr. Paddy Padmanathan, ACWA Power’s CEO stated, “The Shuqaiq project is a live example of the success of public private partnerships and their ability to meet the growing demand of power and water in the Kingdom. The capacity it will add will be a huge addition to the power grid and water network in Southern Region of Saudi Arabia.”

Eng. Al-Mahdi concluded by saying, “We look forward to the project reaching full commercial production by the end of 2010 thus achieving its objectives of providing power and water to the public. This achievement will validate the success of public private partnerships in vital industries, creating job opportunities, opening new investment channels for local funds and attracting foreign investment.”

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Saturday, May 1- 2010 @ 9:37 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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