The rising water consumption in Saudi Arabia gives rise to a new water and power company that has not only the local dominance but international clout as well. At its launch on Monday at the Jeddah InterContinental Hotel, the newly formed International Company for Water and Power Projects (ACWA Power International), with an initial capital of SR2.92 billion ($780 million) will develop, own and operate seawater desalination and power generation projects worldwide. Structured as a joint stock company, ACWA Power International's capital will be raised to SR 4.0 billion ($1.06 billion) within the next few months. According to Abdullah Al-Wadani, public relations manager of ACWA Power International, the expansion will build on the existing portfolio of plants developed and owned by ACWA Power to produce 4,855 MW and 2.24 million cubic meters of water per day. ACWA Power International will participate in bidding on water and power projects in Asia, Middle East and Africa. The new company is majority owned by ACWA Power Development - a joint venture between Abdullah Abunayyan Group and Al-Muhaiedib Group - which at present has ongoing multi-billion water and power projects in the Kingdom. ACWA Power International will function as a developer of independent water and power projects structured on a concession or utility outsourcing contract model using a limited recourse, project-finance framework. As a lead developer, ACWA Power International will identify global opportunities with a consortium of development partners and identify optimum technical solution, among others. Recent reports said the Kingdom produces around 25 percent of the world's desalinated water. Al-Wadani told the Saudi Gazette that since the privatization of water supply and power generation sector in 2004, ACWA Power Development is one of the first private companies at the forefront of development. Since then, ACWA Power Projects, the seed company, has participated in the development of a number of water and power projects throughout the Kingdom, notably, the Marafiq Jubail IWPP (independent water and power project), the Rabigh IWPP, the Shuaibah IWPP and its expansion, the Shuqaiq IWPP, as well as the self-contained, floating desalination plants under the brand name Bowarege. The Marafiq Jubail IWPP (Jubail Water and Electricity Co) is a $3.5 billion project that will supply water and power to the Jubail Industrial City for 20 years starting from early 2010 under the BOOT (build-operate-obtain-transfer) scheme. When commissioned, the plant will be the largest power and desalination plant in the world having a capacity of 800,000 cubic meters a day of water and 2,743MW (net) of power. With natural gas as fuel, the plant will utilize combined cycle power plant technology with multi-effect desalination. The Rabigh IWSPP (Rabigh Arabian Water and Electricity Co) which has an estimated project cost of $1.3 billion, will provide water, power and steam to the largest petrochemical complex in the Gulf region under the Saudi Aramco-Sumitomo Chemical Corp joint venture for 25 years. The plant will use heavy fuel oil as fuel and steam turbines will generate power, while desalination will take place through reverse osmosis system. The plant, once operational, will have a capacity of 134,000 cubic meters of water a day, 360MW (net) of power and 1,230 ton/hour of steam. The Shuaibah IWPP (Shuaibah Water and Electricity Co), the first in the Kingdom at an estimated project cost of $2.45 billion, is regarded as one of the largest combined water and power plants under construction in the world. The plant uses steam for power generation and desalinated water production using multi-sate flash distillation technology. To be completed by July 2009, it has a capacity of 880,000 cubic meters a day of water and 900MW(net) of power. The plant will supply water and power to Makkah, Jeddah, Taif and Baha. The Shuaibah IWP Expansion (Shuaibah Expansion Project Co) is a desalination plant utilizing reverse osmosis technology to augment water supplies in parts of t he Western region “on a fast track basis” with a capacity of 150,000 cubic meters of water a day. Target date of completion is February 2009. The Shuqaiq IWPP (Shuqaiq Water and Electricity Co) locate at the south west coast of the Kingdom, being built at a cost of $2 billion, will utilize steam for power production and reverse osmosis technology for desalination. Set for completion in 2010, it will have an operating capacity of 212,000 cubic meters of water a day and 850MW (net) of power. The Bowarege IWP (International Barges Co. for Water Desalination) commissioned two barges fitted with reverse osmosis desalination plants, power generators that are anchored off Shuaibah , 110 km south of Jeddah, have a water capacity of 50,000 cubic meters a day. They are rapidly deployable whenever necessary to enhance the water supply in Jeddah. The second of the two barges arrived from South Korea on Oct. 7 and has a maximum capacity of 26,000 cubic meters. The two barges are the biggest of its kind in the world, Al-Wadani added. __
