88-year-old African company and top Chinese hydropower construction firm sign a joint $2.2 billion deal for an energy project in Saudi Arabia

An Egyptian-founded energy company with a growing footprint across Africa is taking its infrastructure expertise to Saudi Arabia, after Elsewedy Electric and China’s Sinohydro signed a $2.2 billion contract to expand the Rabigh 2 Independent Power Plant.

• Elsewedy Electric and Sinohydro have secured a $2.2 billion contract to expand Saudi Arabia's Rabigh 2 Independent Power Plant.
• The project involves engineering, procurement, and construction of a 2.3 GW gas-fired power plant expansion, with commercial operations scheduled for May 2029.
• The facility will utilize six Siemens gas turbines and two steam turbines, along with modern supporting systems.
• The expansion is expected to significantly boost Saudi Arabia's electricity supply, responding to rising demand in industrial, commercial, and residential sectors.

Founded in Cairo in 1938 as a family business trading electrical equipment, Elsewedy Electric, currently led by Managing Director Ahmed Elsewedy, has expanded into cable manufacturing, power generation, transmission and engineering.

Its operations now span multiple African markets, positioning the company as one of the continent’s homegrown industrial groups competing for major infrastructure contracts beyond its domestic market.

The agreement, awarded by project developer Al Mourjan Two for Electricity Company, covers the engineering, procurement, and construction of a 2.3-gigawatt (GW) gas-fired power plant expansion.

Under the deal, the Egyptian-based company and Sinohydro will design, procure equipment for, construct, install, commission, and perform performance testing on the facility, as reported by Zawya.

“Rabigh 2 IPP Expansion is an important addition to Saudi Arabia’s power system, providing the reliable and flexible generation capacity needed to support the kingdom’s growing electricity demand,” Dr. Samir J. Serhan, Chief Executive Officer, Acwa, stated.

“At Acwa, we are proud to bring our development and operational expertise to this project and, together with our partners, remain focused on delivering it safely, efficiently, and on schedule to support the Kingdom’s long-term energy and economic ambition,” he added.

Their responsibilities also include civil works and connecting the plant to Saudi Arabia’s national electricity grid.

“Together with Sinohydro, we bring the full scope of this project, from engineering through to commissioning under one accountable team, and we are fully mobilized to take Rabigh 2 from contract to commercial operation, building on the strong partnership we have built with the developer and off-taker throughout this process,” said Hesham Hegazy, Chief Executive Officer, Elsewedy Electric PSP.

The facility will feature six Siemens SGT6-5000F gas turbines and two Siemens SST-5000 steam turbines, supported by six heat recovery steam generators and other mechanical, electrical and control systems.

Commercial operations are set to begin in May 2029.

Once completed, the expansion is expected to strengthen Saudi Arabia’s electricity supply as demand rises across its industrial, commercial and residential sectors.

Rabigh 2 Independent Power Plant

The Rabigh 2 Independent Power Plant (IPP) is a major gas-fired electricity project on Saudi Arabia’s western coast, near the Red Sea.

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The facility is designed to supply power to the country’s national grid, with a new expansion expected to significantly increase its generating capacity.

The original plant has a capacity of about 2,060 megawatts (MW), while the expansion is expected to add approximately 2,313.5 MW.

The additional capacity will help meet growing electricity demand from industries, businesses and households.