A consortium comprising PowerChina, Egypt’s Elsewedy Electric and Beijing-headquartered Sinohydro has signed an engineering, procurement and construction (EPC) contract for Saudi Arabia’s Rabigh 2 combined-cycle gas-turbine (CCGT) independent power project (IPP) expansion.

The signing ceremony took place in Riyadh on 12 October and the contract involves the plant’s design, procurement, installation, construction, commissioning, grid connection and performance testing.

Construction works had commenced, with Elsewedy Electric and Sinohydro carrying out works on the project.

The signing follows the project’s financial close earlier this month, after it secured SR9.69bn ($2.58bn) in long-term financing.

The financing has a tenor of approximately 34 years and was provided by a consortium of local, regional and international lenders.

The project is being developed by Al-Morjan Two Electricity Company, in which Acwa and Saudi Energy, formerly Saudi Electricity Company, each hold a 40% stake.

In April, it was reported that Acwa and Saudi Energy had signed a 31-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) for the project.

The agreement is valued at SR11.5bn ($3.07bn) and covers the development of a CCGT plant in the Mecca region under a build, own and operate arrangement. The project also includes the development and expansion of a 380kV electrical substation. The plant is designed to be ready for the future installation of carbon-capture technology.