Egypt’s Elsewedy Electric and China’s Sinohydro, a subsidiary of PowerChina, have won a $2.2 billion engineering, procurement, and construction contract to expand the Rabigh 2 Independent Power Producer project in Saudi Arabia.
The 2.3-gigawatt natural gas-fired plant will be developed under an EPC agreement awarded by Al Marjan II Electricity Company, a project company owned by ACWA Power and Saudi Electricity Company, each holding a 40 percent stake.
Located in Makkah Province in western Saudi Arabia, the project will use combined-cycle technology to enhance fuel efficiency. It will be equipped with six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines.
https://x.com/AlArabiyaBN_KSA/status/2110362840187990397
Commercial operations are scheduled to begin in May 2029. Energy-sector reports said initial construction had already reached 39 percent completion before the main contract was signed.
$2.58 Billion Financing Package
The project has reached financial close with support from 14 local and international lenders. The financing package comprises long-term loans totaling SAR 9.69 billion, equivalent to about $2.58 billion, with maturities of up to 34 years.
Participating institutions include the Industrial and Commercial Bank of China, Saudi National Bank, Riyad Bank, HSBC, Standard Chartered, and several other financial institutions.
31-Year Power Sale Deal
The project company has also signed a 31-year power purchase agreement with the Saudi Power Procurement Company, valued at approximately SAR 11.5 billion, or $3.07 billion.
The parties have not revealed how the $2.2 billion construction contract will be allocated between Elsewedy Electric and Sinohydro.
The award underscores Elsewedy Electric’s expanding presence in the Middle East’s infrastructure and energy sectors. It also reflects the growing role of Egyptian-Chinese partnerships in delivering large-scale projects in Saudi Arabia, as the Kingdom continues investing heavily to meet rising power demand and advance its long-term economic and industrial ambitions.
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