The Joint Venture of ELSEWEDY ELECTRIC PSP and Sinohydro Signs EPC Contract for Rabigh 2 IPP Expansion Project, Marking Major Milestone for Saudi Arabia’s Energy Future

Contract signature marks the start of full-scale execution by the joint venture on the 2.3 GW combined-cycle power plant.

EPC contract signed for the 2.3 GW Rabigh 2 IPP Expansion Project, one of the region’s largest gas-fired combined-cycle developments with a value of approximately $2.2bn.

Full EPC delivery by the joint venture of ELSEWEDY ELECTRIC PSP and Sinohydro, under contract with developer Al Mourjan Two for Electricity Company.

More than five million safe man-hours achieved to date

Commercial operation targeted for May 2029

The joint venture between ELSEWEDY ELECTRIC PSP and Sinohydro has signed the Engineering, Procurement, and Construction (EPC) contract for the Rabigh 2 Independent Power Plant (IPP) Expansion Project, one of the region’s most significant gas-fired combined-cycle developments with a total value of   ̴2.2 billion USD. Awarded by developer Al Mourjan Two for Electricity Company, the contract formally launches full-scale execution of the 2.3 GW facility under the joint venture’s responsibility.

As EPC contractor, the joint venture is responsible for the full design, engineering, procurement, erection, construction, commissioning, and performance testing of the plant, together with all associated civil works and interconnection with the national grid. The plant is designed in an SGT6-5000F 2× (3×3×1) configuration and will comprise six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines, supported by a bypass stack and diverter damper for simple-cycle operation, six Heat Recovery Steam Generators, a cooling tower, and the full complement of mechanical and electrical and instrumentation and control Balance of Plant systems. This turn-key scope reflects the joint venture’s capability to deliver complex, large-scale power infrastructure to international standards, drawing on the Joint Venture deep regional execution experience as well as global engineering and construction expertise.

With commercial operation targeted for May 2029, Rabigh 2 IPP Expansion Project will add a substantial source of reliable capacity to the national grid, supporting industrial, commercial, and residential demand growth across the Kingdom.

With the contract now signed, work on the ground is already well underway under the previously issued Limited Notice to Proceed. Since commencement, the project has reached more than 39% overall progress while construction continues to gain momentum across all project activities. The project has also achieved more than five million safe man-hours to date, reflecting the joint venture’s Safety-First culture. This strong early momentum demonstrates the strength of the partnership between the developers and the EPC joint venture, positioning the project firmly on track toward commercial operation in May 2029.

“Rabigh 2 IPP Expansion is an important addition to Saudi Arabia’s power system, providing the reliable and flexible generation capacity needed to support the kingdom’s growing electricity demand. Reaching this milestone reflects the strength of the partnership between the project’s developers, and our EPC partners, as well as the disciplined execution already underway on site. At Acwa, we are proud to bring our development and operational expertise to this project and, together with our partners, remain focused on delivering it safely, efficiently, and on schedule to support the Kingdom’s long-term energy and economic ambition,” said Dr. Samir J Serhan, Chief Executive Officer, Acwa.

“Signing this EPC contract is a proud moment for our joint venture and a reflection of the trust our client has placed in our ability to deliver complex power infrastructure safely and to the highest international standards. Together with Sinohydro, we bring the full scope of this project, from engineering through to commissioning under one accountable team, and we are fully mobilized to take Rabigh 2 from contract to commercial operation, building on the strong partnership we have built with the developer and off-taker throughout this process,” said Hesham Hegazy, Chief Executive Officer, Elsewedy Electric PSP.

“This contract signing reflects the confidence our client has placed in the joint venture’s technical capability and delivery track record. Sinohydro is proud to bring its global EPC experience to this partnership with Elsewedy Electric PSP, and together we are committed to executing every element of this project’s scope – safely, efficiently, and to the highest quality standards – as one integrated team,” Peng Gang, President, PowerChina MENA.

About Elsewedy Electric

ELSEWEDY ELECTRIC (EGX: SWDY.CA) is a leader in integrated energy, infrastructure & digital solutions. For 87 years, ELSEWEDY ELECTRIC has been committed to providing reliable energy solutions, hence creating smarter and more livable cities. As the pioneer in energy and infrastructure solutions in Africa, Middle East & Asia, the company operates in 6 business lines: wires, cables & accessories, electrical products, engineering & construction, infrastructure investments, Building Solutions & digital solutions. Headquartered in Egypt, ELSEWEDY ELECTRIC reported revenues of USD 5.7 billion in 2025, with a capacity of 22,000 employees, 60 international offices, 34 production facilities, with export capacity to over 100 countries worldwide.

About Sinohydro

Sinohydro is a leading global engineering, procurement, and construction (EPC) contractor and a subsidiary of Power Construction Corporation of China (POWERCHINA), a Fortune Global 500 company. Founded in the early 1950s, Sinohydro built its reputation as China’s foremost hydropower construction enterprise before expanding into a diversified international business spanning power generation, water conservancy, transportation, civil works, and infrastructure development. Today, Sinohydro delivers projects across Asia, Africa, the Americas, and the Middle East, drawing on POWERCHINA’s global engineering expertise and one of the industry’s largest track records in large-scale power and infrastructure construction.