Saudi Electricity Co has signed a SR5.4bn ($1.44bn) contract for a Saudi company to build 1200 MW of power generation capacity at an existing plant in the Saudi capital. The oil fired PP10 combined cycle plant power plant in Riyadh currently has a generation capacity of 2240 MW. The contractor will add 10 steam turbines which should be in operation within 46 months, SEC said in a statement.

Saudi Arabian Bemco Contracting Co (Bemco), one of three local companies that pre-qualified, submitted the lowest bid of $1.43bn for the expansion project. Saudi Electricity has an $80bn investment plan to increase its power generation capacity by 30 GW by 2018 to meet a power demand which is growing at around 8 percent each year.