The joint venture between ELSEWEDY ELECTRIC PSP and Sinohydro has signed an Engineering, Procurement and Construction (EPC) contract for the Rabigh 2 Independent Power Plant (IPP) Expansion Project in Saudi Arabia. Valued at approximately $2.2 billion, the 2.3 GW gas-fired combined-cycle power plant is expected to begin commercial operations in May 2029.
The contract was awarded by Al Mourjan Two for Electricity Company and marks the start of full-scale execution under the joint venture. The project is among the region’s major power generation developments and is expected to strengthen Saudi Arabia’s electricity supply as demand continues to grow.
Construction Progress Exceeds 39%
Work on the project began under a previously issued Limited Notice to Proceed, with overall progress now exceeding 39%. The joint venture has also recorded more than five million safe man-hours, reflecting its focus on workplace safety during construction.
Under the EPC contract, the joint venture will oversee the complete project delivery, including design, engineering, procurement, construction, installation, commissioning and performance testing. The scope also covers civil works and connection to the national electricity grid.
The plant will feature six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines. Its configuration will also include six heat recovery steam generators, a cooling tower, a bypass stack and diverter damper for simple-cycle operation, alongside the associated mechanical, electrical, instrumentation and control systems.
Supporting Saudi Arabia’s Energy Demand
Once operational, the Rabigh 2 expansion will add substantial generation capacity to the national grid, supporting electricity demand from industrial, commercial and residential users across the Kingdom.
Dr. Samir J. Serhan, Chief Executive Officer of ACWA, said the project would provide reliable and flexible generation capacity to support Saudi Arabia’s growing electricity needs. He highlighted the partnership between the developers and EPC contractors, adding that the project team remains focused on safe, efficient and timely delivery.
Hesham Hegazy, Chief Executive Officer of ELSEWEDY ELECTRIC PSP, described the contract signing as a significant milestone for the joint venture. He said the partnership with Sinohydro brings the project’s engineering, construction and commissioning responsibilities under one team, with the joint venture fully mobilised to deliver the plant.
Peng Gang, President of PowerChina MENA, said the agreement reflects the client’s confidence in the joint venture’s technical capabilities and delivery record. He added that Sinohydro would contribute its international EPC experience to ensure the project meets safety, efficiency and quality standards.
A Major Infrastructure Milestone
The Rabigh 2 expansion adds to Saudi Arabia’s efforts to strengthen its power infrastructure and meet future electricity requirements. With construction progressing and commercial operation targeted for May 2029, the project represents a significant undertaking for the joint venture and its development partners.
ELSEWEDY ELECTRIC is an integrated energy, infrastructure and digital solutions provider headquartered in Egypt, with operations across six business lines and a presence in more than 100 export markets. Sinohydro, a subsidiary of POWERCHINA, brings international engineering and construction experience across power generation, water, transport and infrastructure projects.
