China’s Sinohydro and Elsewedy Win $2.2 Billion Saudi Gas Power Plant Contract

Egypt-based Elsewedy Electric and China's Sinohydro, a subsidiary of state-owned Power Construction Corp. of China, have signed a $2.2 billion engineering, procurement, and construction (EPC) contract to develop a 2.3-gigawatt gas-fired power plant in Saudi Arabia. The contract for the Rabigh 2 IPP expansion was awarded by Al Mourjan Two for Electricity Co., a project vehicle established by ACWA Power and Saudi Energy, which each hold a 40 percent stake.

Located in Saudi Arabia's western Mecca region, the facility will feature six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines operating in a combined-cycle layout. Commercial operations are targeted to commence in May 2029. Preliminary construction had already reached more than 39 percent completion under a limited notice to proceed prior to the main contract execution.

According to reports cited by MEED, the project reached financial close with 14 domestic and international lenders providing 9.69 billion Saudi riyals ($2.58 billion) in long-term debt maturing in approximately 34 years. The lending syndicate includes the Industrial and Commercial Bank of China alongside institutions such as Saudi National Bank, Riyad Bank, HSBC, and Standard Chartered.

The generated electricity will be sold to Saudi Power Procurement Co. under a 31-year agreement valued at 11.5 billion riyals ($3.07 billion). The contract breakdown between Sinohydro and Elsewedy Electric was not publicly disclosed.