Rabigh 2 IPP Secures $2.5B Financial Close for 2,313.5 MW Saudi Power Plant

This content is the exclusive copyright of Construction Review Online (constructionreviewonline.com). Original URL: https://constructionreviewonline.com/rabigh-2-ipp-secures-2-5b-financial-close-for-2313-5-mw-saudi-power-plant/. © 2026 Group Africa. All rights reserved. Unauthorized reproduction, scraping or republication is strictly prohibited and constitutes wilful copyright infringement. If you are reading this on any site other than constructionreviewonline.com, the content has been stolen.

Saudi Energy Company and ACWA Power Company made an announcement on Sunday that Al-Morjan Two Electricity Company achieved financial close for the SAR 9.69 billion Rabigh 2 IPP Expansion Project. This project is a combined-cycle power plant that is located in the Kingdom of Saudi Arabia’s Western Province. It boasts a generation capacity of 2,313.5 MW. Also it boasts the readiness for the construction of a carbon capture unit. This project comes in Saudi gears up its efforts to develop power infrastructure in bid to boost its energy capacity.

The project involves the development, construction, ownership and operation of a combined-cycle gas-fired power plant.

Shareholding

Saudi Energy holds a 40% stake in the project, while ACWA Power also holds a 40% stake.

Financiers

The companies said financing was secured through a consortium of local, regional and international lenders. The lenders comprised of Alinma Bank, Riyad Bank, Saudi Awwal Bank, and The Saudi National Bank; Abu Dhabi Commercial Bank PJSC, Boubyan Bank K.S.C.P., and Commercial Bank of Dubai PSC; and China Minsheng Banking Corp. Ltd. Hong Kong Branch, HSBC Bank Middle East Limited, Industrial and Commercial Bank of China, Industrial Bank Co. Ltd. Beijing Branch, National Bank of Greece (Cyprus) Ltd, Standard Chartered Bank (Taiwan) Limited, and Sumitomo Mitsui Trust Bank, Limited (London Branch).

The companies said the guarantees provided for the financing comprise a limited guarantee covering ACWA Power’s share of the liquidity reserve and reserve account.

The financial impact is expected to begin in the second quarter of 2029, and the Saudi National Bank is a related party.

Factsheet: Rabigh 2 IPP Expansion Project

Project Name: Rabigh 2 IPP Expansion Project

Project Entity: Al-Morjan Two Electricity Company

Location: Western Province, Kingdom of Saudi Arabia

Plant Type: Combined-cycle gas-fired power plant

Generation Capacity: 2,313.5 MW (carbon-capture ready)

Total Investment: SAR 9.69 billion ($2.58 billion USD)

Key Developers: Saudi Energy Company (40%), ACWA Power (40%)

Financial Impact: Expected starting Q2 2029

Lending Consortium, Local & Regional: Alinma Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Abu Dhabi Commercial Bank, Boubyan Bank, Commercial Bank of Dubai

International: HSBC Middle East, ICBC, China Minsheng Bank (HK), Industrial Bank Co. (Beijing), National Bank of Greece (Cyprus), Standard Chartered (Taiwan), Sumitomo Mitsui Trust Bank (London)