2026-10-20
- It is reported that a consortium of Elsewedy Electric and Sinohydro signed an EPC (Engineering, Procurement and Construction) contract worth about US$2.2 billion for the Rabigh 2 expansion combined-cycle power plant in Saudi Arabia, announced on 13 October 2026.
- The plant has a capacity of 2,313.5 MW, according to reports, and will use six Siemens SGT6-5000F gas turbines, two SST-5000 steam turbines and six HRSGs (Heat Recovery Steam Generators).
- The client is Al Mourjan Two Electricity Co., which is reported to have been set up by ACWA Power and Saudi Energy.
- The target for COD (Commercial Operation Date) is May 2029, and overall site progress is said to have exceeded 39%.
- ACWA Power is reported to have announced financial close for the project on 4 October 2026.
According to reports, a consortium of Egypt’s Elsewedy Electric and China’s Sinohydro has signed an EPC contract worth about US$2.2 billion for the Rabigh 2 expansion project on Saudi Arabia’s western Red Sea coast. It is reported that Elsewedy Electric announced the contract on 13 October 2026. The facility is a natural gas-fired CCGT (Combined Cycle Gas Turbine) power plant with a capacity of 2,313.5 MW, and the target for commercial operation is said to be May 2029. The project is being developed as an IPP (Independent Power Producer) project, and the client is a project company led by ACWA Power.
The project is known to be an expansion of the Rabigh 2 independent power plant in western Saudi Arabia. According to Elsewedy Electric’s statement, the entity that awarded the contract is Al Mourjan Two Electricity Co. According to TradeArabia, this company was set up by ACWA Power and Saudi Energy. ACWA Power is reported to be a power and water developer listed on the Saudi exchange under code 2082.
The construction consortium is said to consist of Elsewedy Electric Power Systems Projects (Elsewedy Electric PSP), the power projects arm of Elsewedy Electric, and China’s Sinohydro. Sinohydro’s parent is known to be the state-owned builder Power Construction Corporation of China, or POWERCHINA. How the contract value is split between the two partners has not been disclosed.
The scope is reported to be turnkey and to cover design, supply, installation, construction, commissioning and performance testing, together with associated civil works and connection to the national electricity grid. The main equipment is said to be six Siemens SGT6-5000F gas turbines, two SST-5000 steam turbines and six HRSGs, together with a cooling tower, control systems and supporting mechanical and electrical equipment.
On the development side, ACWA Power is reported to have signed the PPA (Power Purchase Agreement) on 16 April 2026. The offtaker is said to be the Saudi Power Procurement Company, and the project scope reportedly includes developing, financing and expanding a 380 kV substation. The plant is reported to be prepared for the future installation of a carbon capture unit. ACWA Power is known to hold an effective 40% stake in the project.
Numbers
The contract value is reported to be about US$2.2 billion. The generating capacity is 2,313.5 MW, which some reports express as 2.3 GW. The equipment configuration is known to be six gas turbines, two steam turbines and six HRSGs.
On site progress, overall progress is said to have exceeded 39%, and the partners are reported to have passed five million safe man-hours on site. The work is reported to have started under an earlier Limited Notice to Proceed.
On project finance, ACWA Power is reported to have announced financial close on 4 October 2026 in a filing to the Saudi stock exchange (Tadawul). The long-term financing is said to be about SAR 9.69 billion. The lenders are reported to include the Saudi banks Alinma Bank, Riyad Bank, Saudi Awwal Bank and The Saudi National Bank; the Gulf banks Abu Dhabi Commercial Bank, Boubyan Bank and Commercial Bank of Dubai; and international banks including China Minsheng Banking Corp, HSBC Bank Middle East, Industrial and Commercial Bank of China, Industrial Bank, National Bank of Greece, Standard Chartered Bank and Sumitomo Mitsui Trust Bank. ACWA Power is said to have provided a limited guarantee covering its share of the liquidity reserve and reserve account.
According to Enerdata, the expected annual output of the plant is about 18.3 TWh. ACWA Power expects its financial impact to begin in the second quarter of 2029. Interest rates, payment currency and terms, delay penalties, interim milestones and margins have not been disclosed.
Timeline
2026-04-16 — ACWA Power is reported to have signed the PPA for the Rabigh 2 expansion project.
2026-10-04 — ACWA Power is said to have announced financial close for the Rabigh 2 expansion project.
2026-10-13 — Elsewedy Electric is reported to have announced the EPC contract of about US$2.2 billion signed with Sinohydro as a consortium.
2029-05 — Target for commercial operation.
Note
- HRSG (Heat Recovery Steam Generator): Equipment that recovers heat from the hot exhaust gas of a gas turbine to produce steam; the steam drives a steam turbine and raises the efficiency of a combined-cycle plant.
- Limited Notice to Proceed: A document by which the client allows some work to start before the main contract takes effect.