Trowers & Hamlins

Trowers & Hamlins, the international law firm, has been appointed as legal advisers to one of the consortia bidding for the contract to build and operate Saudi Arabia’s second privately funded water and power project, the over US $1 billion Shuqaiq IWPP (Independent Water and Power Project).

The consortium that Trowers & Hamlins will be working with is led by ACWA Power Projects (Saudi Arabia), Mitsubishi Corporation (Japan) and Gulf Investment Corporation (co-owned by the six GCC nations*).

Funders to the scheme are expected to include a range of regional banks and at least one international bank.

The Shuqaiq IWPP will produce 212,000 cubic metres of clean drinking water per day with the power generation element producing 850 MW of electricity for the cities of Abha and Jizan. Closing date for bid submissions is July 30 2006.

Trowers & Hamlins are already advisers to the international consortium that were recently appointed to build and operate Saudi Arabia’s first ever privately funded IWPP the US $2.5 billion Shuaibah IWPP. Financial close on Shuaibah was completed in January of this year.

Comments Leroy Levy, Partner, of Trowers & Hamlins: “It is signifcant that Saudi Arabia is pushing ahead with this bidding process hot on the heels of the closure of the Shuaibah deal. It is a real show of intent by the Saudi Government and illustrates just how serious they are to liberalise and modernise their provision of power and water.”

The Shuqaiq IWPP is the second in a series of four IWPPs with dozens expected to be launched after these initial pathfinders.

Other rival consortium bidding for the Shuqaiq IWPP contract are believed to be led by Powertek (Malaysia), Mitsui (Japan) and Marubeni (Japan).

*Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman