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The first quarter of 2010 heralded a number of major projects as industry continues to turn a corner across the region.
In January, Kuwait’s Ministry of Electricity and Water gave the go-ahead for the US $29 million three-year construction of overhead transmission lines in several areas in the country. The lines range from 32kv to 300kV, with the United Gulf Construction Company as the sole contractor.
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It follows the Ministry’s approval of a 2000MW gas-fired power plant in Subiya in October. It is to be completed in two parts: firstly to add a capacity of 1300MW to the electricity grid in Q3 2011 and then to increase the capacity by 700MW in 2012.
The project has a value of $ 2.65 billion and has three main contractors: Al Rashad Group for Projects Holdings, General Electric and Hyundai Heavy Industries. The latter two companies signed the EPC contract in September and the deal continues a mercurial relationship between the ministry and the Japanese company. It is expected to meet the target for phase one.
But Saudi Arabia – the world’s third largest water consumer per capita has arguably the most momentum in its utilities developments with a string of big projects. The Saudi Electricity Company (SEC) approved the conversion of the Al Quarayyah power plant from a simple cycle into a combined cycle plant by adding five steam turbines, boosting efficiency and leading to an expected capacity of the plant to nearly 3000MW per year.
It followed the start of the expansion of a substation in Riyadh, a wide ranging power transmission project valued at $109 million, which includes design, material supply and construction of four turbines. Arabian Bemco was appointed as contractor while Saudi Consultant as consultant. The project aims to be completed in June.
In Yanbu the Royal Commission for Jubail and Yanbu is in the middle of a busy period. Halfway through the $8 million EPC construction of its substation, contracted to Haif Bin Mohammed Bin Abboud Al Qahtani & Associates for Trading and Contracting Company and due for a 2011 completion, in January it launched the expansion of electrical distribution system at Camp 3 of the Yanbu Industrial City.
The scope of work includes upgrading the existing feeders from Sub-station 2B to two conductors per phase, providing new loops for a proposed Bachelor Housing, installation of 15KV transformers and associated civil works – a $1.5 million project contracted to Mustowra Trade and Contracting.
Still to come from Saudi Arabia this year is the construction of the Ras Al Zour IWPP power and desalination plant, a $5.5 billion project that the government had to relieve from private hands as a result of the economic crisis.
Business Monitor International recently revised down its forecasts for further water desalination capacity.
In its ‘Q110 Saudi Arabia Water Report’, desalinated water is expected to be 1.127 billion m3 in 2010, down from 1.167 billion m3 previously. It cites its revised forecast as a result of slower than expected project progress. Despite delays it is scheduled to commence in the third quarter of this year. Fichner & Co is the contractor.
In Bahrain the Electricity and Water Authority closed 2009 by launching a number of utilities projects.
The authority awarded Cebarco the contract for the civil works of the independent water and power projects in Al Dur and Alei – a $15 million contract. It was almost in parallel with the 132/11- kV GIS substation in Dubai, awarded by the emirate’s Electricity & Water Authority to Larson Electromechanical, a $24 million deal that commenced before the end of the year.
The Bahrain authority also launched the building of its water distribution substation. Contracting Al Mansoor Al A’Ali BSC, the $29 million project includes construction of the substation, upper water storage tank and underground water storage tank. Commencing at the end of last year, it has a two-year target for completion.
But few projects seem as ambitious timewise as the chiller plant in Khalifa City, Abu Dhabi. The $33 million contract for the 2000-tonne structure, which includes development of two 12,500 TRH-capacity thermal storage tanks, was snapped up by Drake & Skull International in January with completion planned within a year.
This was followed last month by DSI’s Water & Power subsidiary winning the entire utilities development work for the residential compound in the city.
Tawfiq Abu Soud, DSWP executive director, said: “One of the motivating factors for us in deciding to form a business stream dedicated to managing and controlling IWP works was the surety that we would continuously have a demand in the market to cater to.”
Upcoming projects
Four nuclear reactors in UAE
Expected: Q1 2012 for 2020 completion.
Estimated value: US $40 billion.
Current contractors: Korea Electric Power Corp (KEPCO), Hyundai Engineering & Construction Co., Samsung C&T Corp, Doosan Heavy Industries & Construction, Westinghouse Electric
Rabigh Power Plant Extension (phase 6) in Saudi Arabia
Expected: Q2 2010 for Q3 2014 completion (estimation)
Estimated value: US $4 billion
Current contractors: tender still out
Water and desalination stats
Biggest water consumer per capita – Abu Dhabi (525-600 gallons a day)
Biggest water producer – Saudi Arabia (third biggest consumer)
Estimated forecast for desalination in 2010 (Saudi Arabia) - 1.127 billion m3
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