Chinese firm Sepco III Electric Power Construction Corp has entered a deal with Saudi Arabia's Saline Water Conversion Corp (SWCC) for completion of the third phase of the Yanbu water and power project.
The power plant, being built on the Red Sea coast, will cost $1.37bn and have a power generation capacity of 2,500 MW in addition to producing 550,000 cubic meters of water a day to supply the Muslim holy city of Medina, reported Reuters.
The plant’s main equipment will be manufactured and supplied by General Electric, according to a statement from SWCC.
Production of desalinated water is expected to start within a year and the plant will reach its full capacity in 22 months, according to SWCC.
Samsung Engineering Co Ltd, which was part of a consortium that won the contract to build the project said in January its order from SWCC to build the Yanbu plant had been terminated, reported Reuters.
Construction work on the project is 60% complete, according to SWCC.