Elsewedy Electric, Egyptian integrated energy solution company, has announced that its joint venture (JV) with Chinese Sinohydro has secured a $2.2 bn engineering, procurement, and construction (EPC) contract for the Rabigh 2 Independent Power Plant (IPP) expansion project in Saudi Arabia, Zawya reported on 14 October.

The 2.3 GW gas-fired combined-cycle power plant will be developed in the kingdom’s western province, with commercial operations scheduled to begin in May 2029.

The joint venture will oversee the project’s design, engineering, procurement, construction, installation, commissioning, and performance testing, including associated civil works and grid connections.

The contract was awarded by Al Mourjan Two for Electricity Company, a special-purpose vehicle established by Saudi utility Acwa Power and Saudi Energy to develop the project.

The plant will comprise six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines, alongside six heat recovery steam generators, a cooling tower, and associated mechanical, electrical, instrumentation, and control systems.

Acwa Power Chief Executive Officer Samir Serhan said the project would provide reliable and flexible generation capacity to meet Saudi Arabia’s growing electricity demand.

Serhan added that the company would draw on its development and operational expertise to help deliver the project safely, efficiently, and on schedule, supporting the kingdom’s long-term energy and economic ambitions.

Elsewedy Electric said construction was already under way under a previously issued limited notice to proceed, with overall project progress exceeding 39%.

Meanwhile, CEO of Elsewedy Electric Hesham Hegazy said the contract signing reflected the client’s confidence in the joint venture’s ability to deliver complex power infrastructure to international standards.

He added that the partnership with Sinohydro would cover the project from engineering through to commissioning, with the joint venture mobilized to deliver the plant by its scheduled commercial operation date.

The expansion builds on the existing Rabigh 2 IPP, a 2,060 MW gas-fired combined-cycle power plant on Saudi Arabia’s western coast that entered commercial operation in 2018. The project is part of the kingdom’s independent power producer programme and supplies electricity under a long-term power purchase agreement with Saudi Electricity Company.

In April 2026, Acwa Power signed a power purchase agreement with the Saudi Power Procurement Company for the expansion, which has a planned capacity of 2,313.5 MW and a contract value of SAR 11.5 bn.