Acwa Power awarded contract for Red Sea Utilities project

Acwa Power awarded contract for Red Sea Utilities project

16 Nov 2020

A consortium led by Saudi Arabia’s Acwa Power has been awarded the public-private partnership (PPP) contract by the Red Sea Tourism Development Company (TRSDC) to develop the utilities and related infrastructure for the Red Sea Tourism project in the Saudi Arabia

A consortium led by Saudi Arabia’s Acwa Power has been awarded the public-private partnership (PPP) contract by the Red Sea Tourism Development Company (TRSDC) to develop the utilities and related infrastructure for the Red Sea Tourism project in the Saudi Arabia.

 Energy & Utilities reported in September that the Acwa Power consortium, which also includes Energy China, had been selected as preferred bidder for the planned PPP project.

 Acwa Power, in consortium with Energy China, submitted a best and final offer (BAFO) on 31 August along with the other bidding consortium, led by UAE’s Masdar and France’s Engie. Both groups had submitted original proposals on 10 May.

The PPP contract will include the provision of power and water production, sewage treatment and solid waste treatment. The Red Sea Development Company is owned by sovereign wealth vehicle Public Investment Fund (PIF), and the PIF will provide the guarantee for the 25-year offtake agreement.

Under the first phase of the Red Sea development, which is due to be commissioned in 2022, power generation capacity will be required to service a peak demand of 210MW. Power is planned to be generated for the first phase from photovoltaic (PV) solar and wind energy, with 1GWh of battery storage included.

The 1GWh is expected to allow the resort to remain completely off-grid and powered by renewables day and night.

Under the second phase, which is due to be commissioned by 2030, power generation capacity will be required to meet peak demand of 360MW. The client is planning for geothermal and concentrated solar power (CSP) to add additional capacity by 2030.

For water production, two seawater reverse osmosis (SWRO) plants will be developed with a capacity of 30,000 cubic metres a day (cm/d) under the first phase. The demand will be split between potable water, 21,000 cm/d, and irrigation top-up, 9,000 cm/d.

Under the second phase, an additional SWRO plant will be developed in addition to brine squeezer and chlor-alkali technologies to meet expected demand of up to 50,000 cm/d, split 39,000cm/d and 11,000cm/d between potable water and irrigation top-up respectively.

The selected developer will also be required to provide a sewage treatment plant (STP) with a capacity to treat up to 18,000 cm/d of sewage under the first phase of the project through a constructed wetlands scheme. The peak sewage flow of the development is expected to reach 34,000 cm/d by 2030.

For the waste treatment development, the PPP contract will cover collection, automatic recovery and waste-to-energy production for up to 30 tonnes per day (t/d) under the first day. This will rise to 55 t/d by 2030,

TRSDC was established in line with the kingdom’s Vision 2030 economic reform plan to diversify the country’s economy and increase the kingdom’s tourism sector.

Under the first phase development, TRSDC is planning to develop five islands, two inland sites and deliver 3,000 hotel keys to accommodate 300,000 visitors a year by 2022. By 2030, the client hopes to have developed 22 islands, six inland sites and have delivered 8,000 hotel rooms to service up to 1 million visitors a year.

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