Harbin Electric powers up Saudi projects with $3.6 billion investment
Deal News | Dec 11, 2024 | Legal Community MENA
Simmons & Simmons has successfully provided legal consultation to Harbin Electric International (HEI), a leading Chinese power engineering group, in securing the turnkey EPC contracts for two major greenfield combined cycle gas-fired power projects in Saudi Arabia. The Rumah II and Nairyah II projects, with a combined installed capacity of 3.6 gigawatts and collectively requiring a $3.6 billion investment, are strategically essential components in the Saudi Power Procurement Company's (SPPC) energy framework aligned with the Vision 2030 initiative. Situated strategically near Riyadh and the Kuwait border, the projects were awarded to a consortium that includes prominent players like The Abu Dhabi National Energy Company (TAQA), Japan's JERA, and Al Bawani Water & Power, and are set to deploy Siemens's pioneering CCGT technology. Overseeing the legal facets was a dedicated Simmons & Simmons team, helmed by David Blumental, alongside notable partners Niall Clancy and Steve Kaye, reinforcing the firm's substantial expertise in energy and infrastructure projects across the Middle East and Asia.
Sectors
- Power and Utilities
- Legal Services
- Engineering and Construction
Geography
- Saudi Arabia – The location of the Rumah II and Nairyah II power projects, forming a key component of the country's Vision 2030 energy strategy.
- China – Harbin Electric International is a prominent Chinese power engineering company involved in the projects.
- Middle East – The broader region where the projects and the advising law firm, Simmons & Simmons, have operational involvement.
Industry
- Power and Utilities – The article discusses large-scale power projects for the creation of energy infrastructure in Saudi Arabia.
- Legal Services – Simmons & Simmons' legal advisory role emphasizes the involvement of the legal services industry in major international contracts and energy projects.
- Engineering and Construction – The turnkey EPC contracts signify substantial engineering and construction activities involved in building gas-fired power plants.
Financials
- $3.6 billion – Total investment required for the Rumah II and Nairyah II power projects in Saudi Arabia.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Harbin Electric International (HEI) | Target | Company | A leading Chinese power engineering group involved in the execution of power projects in Saudi Arabia. |
| Simmons & Simmons | Legal Advisor | Company | Provided legal expertise and consultation to Harbin Electric International regarding the EPC contracts. |
| Saudi Power Procurement Company (SPPC) | Vendor | Company | Awarded the power projects to the consortium that includes Harbin Electric International. |
| The Abu Dhabi National Energy Company PJSC (TAQA) | Consortium Member | Company | Part of the consortium awarded the power projects in Saudi Arabia. |
| Japan Energy for a New Era (JERA) | Consortium Member | Company | Japanese energy firm involved in the Saudi Arabian power projects. |
| Al Bawani Water & Power | Consortium Member | Company | Saudi company involved in the consortium for the power projects. |
| Siemens | Technology Provider | Company | Supplying the combined cycle gas turbine (CCGT) technology for the projects. |
| David Blumental | Lead Partner | People | Energy and infrastructure partner leading the Simmons & Simmons team. |
| Niall Clancy | Support Partner | People | Middle East construction disputes partner at Simmons & Simmons. |
| Steve Kaye | Support Partner | People | Asia dispute resolution partner focusing on energy and infrastructure at Simmons & Simmons. |
| Andrew Russell | Associate | People | Senior energy and infrastructure associate at Simmons & Simmons. |
| Janis Ling | Associate | People | Part of the Simmons & Simmons energy and infrastructure advisory team. |