SHOUAIBA PHASE III

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SHOUAIBA PHASE III Shouaiba Independent power
and power project (IWPP) CEM 525 PROJECT
DELIVERY SYSTEMS MOHAMMED JALALUDDIN
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DETAILS OF WEC IWPPs LOCATIONS
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SHOUAIBA PHASE III
Worlds largest new-build IPP / IWPP (by debt
finance) Shuaibah project has been jointly
awarded the Desalination Deal of the Year 2006
by the Global Water Intelligence Shuaibah IWPP
wins prestigious Award Power and Water Deal of
the Year 2005 by (Euromoney, GWI)
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Introduction SHOUAIBA PHASE III IWPP

• Shoaiba project is the first of four IWPPs under
  development in Saudi Arabia
• The Project is to be located adjacent to the
  existing Shoaiba power and desalination complex
  110 km south of Jeddah, on the western coast of
  Saudi Arabia
• The Project will be developed as a Greenfield
  crude oil-fired power and seawater desalination
  plant and associated facilities located on land
  owned by SWCC at Shoaiba, approximately 110 km
  south of Jeddah, on the Red Sea coast.
• The proposed Plant site is located next to the
  existing Shoaiba phase 1 (300 MW and 50 MIGD) and
  phase 2 (550 MW and 100 MIGD) plants owned and
  operated by SWCC.

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PRE-QUALIFIED COMPANIES/CONSORTIUMS FOR
SHOAIBA (PHASE 3) IWPP
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Introduction SHOUAIBA PHASE III IWPP

• A Saudi-Malaysian consortium was selected as the
  first-ranked bidder to build the SR9 billion
  Shuaiba Independent Water and Power Project
  (IWPP).
• Shuaiba is the first of the four IWPP projects
  that will be implemented by the private sector,
  following from the Supreme Economic Council's
  resolution 5/23 issued on June 3, 2002.
• The other three projects include Shuqaiq, Raz
  Azzour and Jubail.
• The Saudi-Malaysian consortium will build, own
  and operate the 900 MW and 880,000 m3/d Shuaiba
  IWPP.
• The credit support is to be provided by the
  ministry of finance. 60 per cent of the share
  capital will be owned by the consortium 32 per
  cent will be owned by Public Investment Fund
  (PIF) and the remaining 8 per cent will be owned
  by the SEC.
• WEC will enter into contractual negotiations with
  the consortium and the Power Water Purchase
  Agreement (PWPA) will be signed between the two
  parties in for a period of (20) years.

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Introduction SHOUAIBA PHASE III IWPP

• Shuaibah Plant will export 194 million gallon of
  water per day (880,000 cubic meters per day) and
  900 megawatt of power.
• This water export will serve the cities of
  Makkah, Jeddah, Al-Taif and Al-Baha, while power
  will be exported to the Western Electricity grid.
  The combined export capacity of the four projects
  will reach 492 million gallons of water per day,
  (2.236 million cubic meters per day) and 4,500
  megawatt of power.
• Consortium of Tanaga Nasional Berhad, Khazanah
  Nasional Berhad and Malakoff Berhad, of Malaysia,
  
• and Arabian Company for Water and Power
  Development and Mada Company for Industrial
  Commercial Investment Limited, of Saudi Arabia,
  own indirectly the other 60.
• The project companys construction contractor is
  a consortium of Siemens (power) and Doosan Heavy
  Industries (desalination) and the operator will
  be Sogex.
• NEW COMPANY NAMED
• Shuaibah Water Electricity Company"

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Financing SHOUAIBA PHASE III IWPP

• The Saudi-Malaysian Consortium has the support of
  international and Saudi Finance Parties including
  
• ABN Amro,
• Arab Bank PLC,
• Export-Import Bank of Korea,
• Riyad Bank and
• Saudi Hollandi Bank.
• out of the projects total cost of US2.5
  billion, more than US1.9 billion was financed
  through senior, project finance, credit
  facilities.
• Commercial bank funding was arranged by Riyad
  Bank, Saudi Hollandi Bank, ABN Amro and Arab
  Bank.
• The two export credit agencies are the
  Export-Import Bank of Korea (Kexim) and Euler
  Hermes of Germany (Hermes).
• The Islamic tranche was led by Al Rajhi Banking
  Investment Corp. of Saudi Arabia.

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PROJECT CONTRACTUAL RELATIONSHIPS
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Project Agreements

• The Project will be built, owned and operated by
  the Project Company.
• In order to expedite the incorporation of the
  Project Company, PIF and SEC are in the process
  of forming the Project Company as a Saudi joint
  stock company of which PIF will initially own 80
  and SEC 20.
• The Successful Bidder will enter into the SSPA
  with PIF and SEC to acquire 60 of the shares in
  the Project Company (at par value). The
  Successful Bidder will also enter into the
  Shareholders Agreement with PIF and SEC.

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SHUQAIQ IWPP PHASE 2 Case Study 2
Independent power and power project (IWPP) CEM
525 PROJECT DELIVERY SYSTEMS MOHAMMED
JALALUDDIN
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DETAILS

• Shuqaiq Phase 2 IWPP
• Water 212,000 m³/day
• Power 700 MW
• Fuel Liquid Fuel (Crude Oil)
• Estimated
• Capital Cost SR 3,800 Million
• total SR 23,000 Millions for 4 initial projects)

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ongoing Project RFQ ISSUED

• (RFQ) to 53 companies for Shuqaiq IWPP
• SOQ Received from 24 companies
• Prequalification 12 companies

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References

• WEC ( Water Electricity Company)
• SWCC
• MARAFIQ