Hyundai Electric Wins Heavy Transformer Deals In Saudi Arabia

The two orders worth $28.6mn are for supplying power transformers and gas insulated switchgears to Saudi Electricity Co

Hyundai Electric and Energy Systems Co. said it has bagged two orders worth $28.6mn to supply power transformers and gas insulated switchgears to Saudi Electricity Co. and Saudi Arabia’s state oil company Saudi Aramco.
Hyundai Electric, a unit of shipbuilding giant Hyundai Heavy Industries Co., said the state-run utility order came to $69mn, while the rest came from Saudi Aramco.
The latest contracts raised Hyundai Electric’s deals in the oil-rich kingdom to more than $180mn in the January-April period, up more than triple from the same period last year.
Hyundai Electric was spun off from Hyundai Heavy Industries Co. in 2017.


Saudi Arabia’s first independent sewage treatment plant reaches financial close

  • The ISTP aims to serve the western districts of Dammam with up to 350,000 cubic meters of water per day

RIYADH: Saudi Arabia’s first independent sewage treatment plant (ISTP) has been awarded to the private sector with a tenure of 25 years following the project’s successful financial close.
Financial closure is when a project’s financial documents have been signed and conditions have been fulfilled.
The ISTP aims to serve the western districts of Dammam with up to 350,000 cubic meters of water per day.
The project agreement was signed between the Saudi Water Partnership Company (SWPC) and a consortium led by Metito Group in January 2019.
The ISTP project is worth $245 million and the investment is made up of a combination of equity and debt, a statement provided to Arab News said.
The successful financial close comes amid the COVID-19 pandemic, which has frozen many large-scale projects around the world.
Khaled Al Qureshi, CEO of the SWPC, said: “Despite global volatility and liquidity issues, and ever-changing market conditions, SWPC and the consortium were able to successfully reach financial closing, in close cooperation with the lenders group.”
He added that the closing deal was testament to the SWPC’s commitment to support and encourage private sector engagement in sustainable development by providing lucrative opportunities for local and foreign investors to participate in the implementation of lifeline water projects, provide job opportunities for young people, and support local output and balanced development.
Non-recourse project financing is being provided by a group of local and international banks, including the National Commercial Bank, Sumitomo Mitsui Banking Corporation Europe Limited, and the Arab Petroleum Investment Corporation, worth a total of $160 million.

“Reaching this stage in the project and resuming construction work under these difficult circumstances indicates confidence in the investment environment in Saudi Arabia and its suitability for the private sector,” Al-Qureshi said.

Rami Ghandour, Metito’s managing director, said on behalf of the consortium: “While the world is navigating unprecedented and testing times due to the fast evolving COVID-19 pandemic, we are delighted to share a strategic milestone for the water and wastewater industry in the Middle East region. The financial structure for this project is a testament to its importance, scale and impact, and the confidence of all stakeholders in its sustainable success.”
We are confident that with the continued support from the SWPC the Dammam ISTP will pave the way for similar developments in the future that can contribute to a more efficient water sector in the Kingdom and beyond.”
The ISTP project is in line with the Saudi Vision 2030 reform plan goal for the optimal use of water resources and to encourage private sector participation in economic development initiatives.


Saudi Arabia moves on wind project

Renewable Energy Project Development Office plans to issue a prequalification request for Yanbu wind project in Saudi Arabia.
Saudi Arabia’s Renewable Energy Project Development Office (Repdo) could issue the request for prequalification (RFQ) for its second planned wind independent power project (IPP) in the second half of the year.
MEED understands Repdo plans to tender the Yanbu wind IPP ahead of several planned wind IPPs in Saudi Arabia.
Sources familiar with the scheme tell MEED Repdo and its consultants are still discussing the final capacity of the Yanbu wind scheme.
The planned Yanbu wind IPP with a capacity of 850MW was initially included in the third round of the National Renewable Energy Programme (NREP).
However, the project was excluded when Repdo issued an RFQ for the third round earlier this year.
Repdo tendered and awarded the first wind project, the 400MW Dumat al-Jandal IPP, under the first round.
Round three
Repdo expects to receive proposals for the category B and category A projects under NREP’s round three on 23 September and 7 October respectively.
The four projects under the third round are:

  • Al-Rass solar PV: 700MW (category B)
  • Saad solar PV: 300MW (category B)
  • Wadi al-Dawasir solar PV: 120MW (category A)
  • Layla solar PV: 80MW  (category A)

In 2019, Riyadh ramped up its clean energy goal to target 27.3GW by 2024 and 58.7GW by 2030, superseding the previous 9.5GW by 2023 target.
Repdo will oversee the development of 30% of this ambitious target through competitive tendering.
The Public Investment Fund (PIF) is expected to appoint developers through direct negotiations for the remaining 70%