Linklaters advises SPPC on landmark procurement and financial close of four greenfield IPPs in Saudi Arabia

Linklaters advised Saudi Power Procurement Company (SPPC) on the procurement and financial close of four greenfield combined cycle gas-fired independent power projects (IPPs) in the Taiba and Qassim regions of the Kingdom of Saudi Arabia. The total of four projects, with a capacity of 1.8GW each, have an estimated combined value of approximately US$7.338bn.

The procurement attracted 21 pre-qualified bidders in February 2023. The winning consortium members included SEC, ACWA Power and HAACO for the Taiba 1 and Qassim 1 projects and Al Jomiah Energy and Water, Buhur, EDF, and Al Ajlan for the Taiba 2 and Qassim 2 projects. The 25-year Power Purchase Agreements (PPAs) for all projects were signed in November 2023, with financial close achieved by 11 July 2024.

These projects are integral to Saudi Arabia's Vision 2030, addressing energy production fluctuations and increasing demand while reducing CO2 emissions through the replacement of older crude oil-fired plants.

The Linklaters cross-jurisdictional energy & infrastructure team was led by Jonathan Inman, with support from Leila Amos and Harith Canna. Wendy Zhang and Sarah Hudson also supported the team.

 
Matt Keats, regional head of Energy and Infrastructure, commented: 

“We are delighted to have advised SPPC on this multi-year complex and transformational project. These four IPPs are not only pivotal to Saudi Arabia’s energy strategy but also underscore the Kingdom’s commitment to sustainability and carbon reduction under Vision 2030. This project highlights the region's progress in the energy sector, and we are proud to be part of this journey."