Elsewedy Electric and a Chinese company win a $2.2 billion contract for a Saudi power station.

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The Egyptian Elsewedy Electric Company, as part of an alliance with the Chinese Sinohydro Company, a subsidiary of the Power China Group, won an engineering, procurement and construction (EPC) contract worth $2.2 billion to develop a natural gas power station in Saudi Arabia with a capacity of 2.3 gigawatts.

The contract for the expansion project of the Rabigh 2 Independent Power Production Plant (Rabigh 2 IPP) was awarded to the consortium by the “Murjan Second Electricity Company”, a project company established by “ACWA Power” and “Saudi Power” with a 40% stake for each.

The project is located in the Makkah Al-Mukarramah region, western Saudi Arabia, and relies on combined cycle technology that increases fuel efficiency. It will include six Siemens SGT6-5000F gas turbines, in addition to two Siemens SST-5000 steam turbines.

The station is expected to begin commercial operation in May 2029, while initial construction work has already exceeded 39% before signing the main contract, according to specialized reports in the energy sector.

The project reached financial closure with the support of 14 local and international financing bodies that provided long-term loans worth 9.69 billion Saudi riyals (about 2.58 billion dollars), with maturities extending to about 34 years.

The list of financiers included the Industrial and Commercial Bank of China (ICBC), along with the National Bank of Saudi Arabia, Riyad Bank, HSBC, Standard Chartered and a number of other financial institutions.

The company that owns the project signed an agreement to sell the produced electricity to the Saudi Energy Purchase Company under a 31-year contract worth about 11.5 billion Saudi riyals ($3.07 billion).

The relevant authorities did not reveal the details of the distribution of the value of the construction contract, amounting to $2.2 billion, between Sinohydro and Elsewedy Electric.

Winning the contract reflects the continued expansion of Elsewedy Electric in infrastructure and energy projects in the Middle East, and also highlights the growing cooperation between Egyptian and Chinese companies in implementing major projects within Saudi Arabia, which continues its huge investments to meet the growing demand for electricity and support its long-term economic and industrial goals.