Emaar, The Economic City (Emaar.EC), the Tadawul-listed company developing King Abdullah Economic City (KAEC), has signed an MoU with Arabian Bemco Contracting Company for installing an open-cycle gas turbine power plant complex in the city.

Dr Abdulraouf Mannaa, managing director, Emaar.EC, and Henry Sarkissian, CEO, Arabian Bemco, signed the MoU, which entails setting up six gas turbine plants that will meet the power requirements of KAEC’s first phase.
Dr Mannaa said: “The important consideration in any development today is the standard of infrastructure it offers. KAEC, as the largest private sector project in the region, is committed to implementing an infrastructure that ensures the highest quality of living. Arabian Bemco has a proven track record in the region and the ability to undertake world-class projects. We will draw on their expertise and experience in meeting the power supply needs of KAEC.”
Sarkissian commented that the sheer size of the project was a challenge and that the company would utilise its long expertise in power generation projects to develop the plants. He said they would have a total capacity of 390 MW and there would be an option of having two more units of 65 MW each.
Two gas turbines will be installed and commissioned within 15 months and the remainder will be installed within 19 months. The gas turbines will have provision for conversion to combined cycle at a later stage and thus meet the power requirements for the entire project up to 2012.
KAEC has six key components: the Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities. Work is progressing on the Industrial Zone, Residential and Resort Districts. Potential investors have been asked to visit the KAEC Presentation Centre in the city for more details and registration.
The agreement with Arabian Bemco followed the signing of an MoU with Siemens for a 110/380 kV power generation and distribution grid within KAEC. The power grid will serve the first phase of the Industrial Zone, Residential area, villas within the Resort, golf course and the Sea Port.
The agreement with Siemens covers the first phase of the project and includes a comprehensive plan including future networking with the Saudi Electricity Company.
Kareem Al Amoudi, vice president, Siemens AG, described KAEC as one of the pioneering projects in the kingdom that were setting new standards in project development, quality and use of technology.
Siemens will develop the power grid for KAEC in two phases. The first part, to be completed by the end of 2008, includes three main power stations of 110 KV and its network. The second phase of work, scheduled to begin in September 2008 and be completed in June 2010, includes four main power stations of 380 KV and its network. The power grid will serve the first phase of the Industrial Zone, Residential area, villas within the Resort, golf course and the Sea Port.
Emaar.EC is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world’s largest property developers, and a number of high-profile investors from Saudi Arabia. Emaar.EC has a share capital of SR8.5 ($2.5 billion) billion consisting of 850 million shares of nominal value SR10 each.
Sagia (Saudi Arabian General Investment Authority), the body responsible for inward investments into Saudi Arabia, is the prime facilitator for KAEC.