Saudi extends bid deadline for power project

Saudi state-run utility the Saline Water Conversion Corporation (SWCC) has agreed to extend by one month the deadline for bids to build a giant power and water project, a senior source said.

The project in Ras Azzour, on the Gulf coast, is expected to be the world's largest when completed during the last quarter of 2013. It will have the capacity to generate 2,400 megawatts of electricity and produce 1,025 million cubic metres of desalinated water per day.

The fresh deadline to submit bids is on April 19 from March 20, the source said. "Bidders confirmed they needed more time, the time given was not enough," the source who did not wish to be named, told Reuters.

Japan's Sumitomo was leading a consortium to build and operate the project. In May, it said it put on hold its consortium's plans for the project estimated at the time at $6 billion (Dh22bn) after the Saudi Government said the plant was no longer designated an independent project.

Instead, SWCC would carry out the project on an engineering, procurement and construction (EPC) basis. "Many companies requested an extension of between four to eight weeks, but SWCC decided to give them four weeks," the source said.

SWCC, the second-largest power producer in Saudi, will take one billion litres of the plant's water production capacity. Saudi Arabian Mining will take 1,350mw and 1,050mwwould be allocated to Saudi Electricity.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.