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Saudi Electricity Company (SEC) has awarded a contract to build the US$2.6 billion Rabigh II independent power project (IPP) in Saudi Arabia to a consortium led by ACWA Power International
After evaluating five proposals, the government-controlled distributor chose the consortium of ACWA Power International, Samsung C&T and MENA Fund, ahead of an Abu Dhabi National Energy Company-led group, which made the lowest bid for the project.
The facility will have capacity to produce 1,813MW and will begin operating in the summer of 2016, Saudi Press Agency cited SEC chief executive officer Ali al Barrak as saying.
Rabigh II is a heavy fuel oil power plant, the fourth project in SEC's IPP programme. It is located 175km north of Jeddah on the west coast of the Kingdom.
Abu Dhabi National Energy Company (TAQA), and its partners Samsung Engineering Company and Qatar Electricity & Water Company (QEWS), also bid for the project. The group’s initial offer in October included the lowest rate at which potential builders pledged to sell power to Saudi Electricity.