$2.2bn Contract Signed for Rabigh 2 Power Expansion

A $2.2 billion engineering, procurement, and construction (EPC) contract has been signed for the expansion of the Rabigh 2 Independent Power Plant in Rabigh, Makkah Province, on Saudi Arabia's western coast. The contract was awarded by Al Mourjan Two for Electricity Company to a partnership between Elsewedy Electric PSP and Sinohydro.

The project will add 2.3 gigawatts of gas-fired combined-cycle generation capacity. Commercial operation is planned for May 2029.

Under the agreement, the contractors will handle design, engineering, equipment procurement, construction, installation, commissioning, performance testing, and civil works, in addition to connecting the new capacity to the national electricity grid.

Why it matters

Reliable and expanded power generation underpins the daily life of residents and businesses across the Kingdom, from homes and schools to industrial and commercial activity. Adding significant combined-cycle capacity on the western coast strengthens the grid that serves communities in Makkah Province and beyond.

This is a large-scale infrastructure project, not a consumer service. It involves no application process, user fees, or validity periods through any government platform.

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