Saudi’s ACWA Power unveils new project bids

Saudi Arabia’s ACWA Power is in the final stages of submitting a bid to develop and operate the Amaala Utilities PPP (Public-Private Partnership) project in the Kingdom, which will serve the Amaala giga-tourism project on the Red Sea coast, according to its second quarter and first half 2022 investor report.

The report, quoting Vice Chairman and CEO Paddy Padmanathan, said the company is in the bid preparation and submission stages for a 500-megawatt (MW) solar photovoltaic Independent Power Plant (IPP) project in Uzbekistan and the 600,000 cubic metres per day Rabigh 4 Independent Water Plant (IWP) project in Saudi Arabia.

Additionally, the Tadawul-listed company has submitted an evaluation proposal to the Saudi sovereign wealth fund, Public Investment Fund (PIF), for developing the next mega projects in the Fund’s renewable energy deployment pipeline.

ACWA Power is part of the consortium developing 1,500 MW Sudair solar power plant, a key project under the PIF’s renewable energy programme.

Padmanathan said ACWA Power is also closing in towards signing the engineering, procurement and construction (EPC) contract and completing the final stages for financial close for world’s largest “green hydrogen production project under construction” in NEOM in the fourth quarter of 2022.

In the first quarter, the NEOM Green Hydrogen Company, a joint venture between ACWA Power, Air Products and NEOM, had signed a $900 million Limited Notice to Proceed (LNTP) agreement to kick-start construction of the project.

The report said prevailing circumstances in the war region [Russia-Ukraine] have affected five ongoing projects, namely the under-construction 1,500 MW Sirdarya CCGT IPP in Uzbekistan; the 500MW Bash, the 500MW Dzhankeldy, and the 100MW Nukus Wind IPPs in Uzbekistan and the 240MW Wind IPP in Azerbaijan.

“The most challenging issue being faced by our EPC contractor is in moving the gas and wind turbines from their places of manufacture to the location of use in the respective countries. Active engagement by all stakeholders to bring solutions ranging from offtakers’ flexibility in project deadlines to instituting inter-governmental schemes in an effort to ease movement of goods have started to bear fruit, and we still believe we would not incur significant delays in either the targeted financial closes of these advanced-development projects currently planned for fourth-quarter 2022 or the commercial operation date of Sirdarya in 2024,” Padmanathan said.