On Behalf of

Business & Finance Club - Industry - Riyadh: Shuqaiq Water and Electricity Company added 340MWh to the Saudi grid Thursday, meeting the increasing demand for power and water in the Southern region, Madani A. Alagi, chairman of Shuqaiq Water and Electricity Company, announced here on Friday.

"The project successfully accomplished its first commercial operation date (COD) by putting its first unit into full production in line with the project timeline," Alagi said, pointing out that the COD added 340 MWh to the Saudi Southern Region power grid.

The project consists of three construction phases and will reach a full production capacity of 850 MWh of electricity and 212,000m3/day after completion to be supplied to the Jazan and Asir provinces.

"The Shuqaiq project is a part of the country's efforts to meet the increasing demand of power and water in the Southern Region of Saudi Arabia and is located approximately 130 km west of Abha," Alagi said.

Abdul Aziz Al-Mahdi, CEO of Shuqaiq Water and Electricity Company, said this was a major step in meeting the company's objectives of completing all requirements on time and within the set target.

"We look forward to the project reaching full commercial production by the end of 2010 thus achieving its objectives of providing power and water to the public. This achievement will validate the success of public private partnerships in vital industries, creating job opportunities, opening new investment channels for local funds and attracting foreign investment," he said.

Shuqaiq Water and Electricity Company was established as a closed joint stock company where the Saudi Public Investment Fund (PIF) owns 32 percent and the Saudi Electric Company (SEC) owns 8 percent with the remaining share belonging to ACWA Power International, Gulf Investment Corporation and Mitsubishi Corp. The project is structured on a concession or utility outsourcing contract model and is the third IWPP project in the Kingdom.

ACWA Power International is the lead developer of the project, began construction work in March 2007. This is the fourth of its seven IWPP/IPP/IWSP projects in the Kingdom. Once all the projects are completed a total full production capacity of 2.3 million cubic meters per day and 6,200 MWh of electricity will be available. The seven projects are spread across the eastern, western and southern regions of the Kingdom.

ACWA Power's CEO Paddy Padmanathan, said the Shuqaiq project is a live example of the success of public private partnerships and their ability to meet the growing demand of power and water in the Kingdom.