Elsewedy-Sinohydro JV signs contract for Rabigh 2 IPP expansion project
· Egyptian market news · SWDY
The joint venture (JV) between Elsewedy Electric PSP and Sinohydro has signed the Engineering, Procurement, and Construction (EPC) contract for the Rabigh 2 Independent Power Plant (IPP) Expansion Project, one of the region's most significant gas-fired combined-cycle developments.
The contract holds a total value of $2.20 billion and is awarded by developer Al Mourjan Two for Electricity Company, formally launching full-scale execution of the 2.3 GW facility under the JV's responsibility, according to a press release.
With commercial operation targeted for May 2029, Rabigh 2 IPP Expansion Project will add a substantial source of reliable capacity to the national grid, supporting industrial, commercial, and residential demand growth across Saudi Arabia.
The JV will be responsible for the full design, engineering, procurement, erection, construction, commissioning, and performance testing of the plant, together with all associated civil works and interconnection with the national grid.
Drawing on the JV deep regional execution experience as well as global engineering and construction expertise, this turn-key scope reflects the JV's capability to deliver complex, large-scale power infrastructure to international standards,
With the contract now signed, work on the ground is already well underway under the previously issued Limited Notice to Proceed.
Since commencement, the project has reached more than 39% overall progress while construction continues to gain momentum across all project activities.
CEO of Acwa, Samir J Serhan, said: “Rabigh 2 IPP Expansion is an important addition to Saudi Arabia’s power system, providing the reliable and flexible generation capacity needed to support the kingdom’s growing electricity demand.”
Serhan noted: “ Reaching this milestone reflects the strength of the partnership between the project’s developers, and our EPC partners, as well as the disciplined execution already underway on site.”
The CEO concluded: “At Acwa, we are proud to bring our development and operational expertise to this project and, together with our partners, remain focused on delivering it safely, efficiently, and on schedule to support the Kingdom’s long-term energy and economic ambition.”
Rabigh 2 IPP is designed in an SGT6-5000F 2× (3×3×1) configuration and will comprise six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines, supported by a bypass stack and diverter damper for simple-cycle operation, six Heat Recovery Steam Generators, a cooling tower, and the full complement of mechanical and electrical and instrumentation and control Balance of Plant systems.
Meanwhile, Hesham Hegazy, CEO of Elsewedy Electric PSP, stated: “Signing this EPC contract is a proud moment for our joint venture and a reflection of the trust our client has placed in our ability to deliver complex power infrastructure safely and to the highest international standards.”
Hegazy added: “Together with Sinohydro, we bring the full scope of this project, from engineering through to commissioning under one accountable team, and we are fully mobilized to take Rabigh 2 from contract to commercial operation, building on the strong partnership we have built with the developer and off-taker throughout this process.”
Peng Gang, President, PowerChina MENA, meanwhile said: “This contract signing reflects the confidence our client has placed in the joint venture's technical capability and delivery track record. Sinohydro is proud to bring its global EPC experience to this partnership with Elsewedy Electric PSP, and together we are committed to executing every element of this project's scope – safely, efficiently, and to the highest quality standards – as one integrated team.”