L&T wins upward of Rs 5,000 cr order for Saudi Arabia's Amaala project

AMAALA is an ultra-luxury destination situated in the Prince Mohammed bin Salman Natural Reserve along Saudi Arabia's northwestern coast

Larsen & Toubro (L&T) on Wednesday announced that it has bagged an EPC contract worth more than Rs 5,000 crore to establish various systems related to renewable energy generation and power utilities for an ultra-luxury tourism destination in the Red Sea region in Saudi Arabia.

The company said in a statement it has been chosen as the turnkey Engineering, Procurement and Construction (EPC) contractor to establish various systems for the Amaala project, a 4,155 square kilometres ultra-luxury resort destination set in the Prince Mohammed bin Salman Natural Reserve along Saudi Arabia’s northwestern coast. Powered by solar energy, it features hotels, residential properties, pristine landscapes and diverse natural ecosystems, coupled with unique and intriguing heritage and local culture.

The L&T statement said the value of the order was in the range of Rs 5,000 crore to Rs 10,000 crore. It said the consortium of UAE's clean energy powerhouse Masdar, and French Electricity utility EDF have signed the concession agreement for the fully integrated utility project with the developers of Amaala. L&T has entered into an EPC agreement with the Sponsors viz. EDF and Masdar.

The project awarded comprises an off-grid renewable energy system of a 250MWp Solar PV plant and a 700MWh Battery Energy Storage System. The scope for water systems involves constructing a 37 MLD Seawater Reverse Osmosis Plant, 6 MLD sewage treatment plants, marine works including intake and outfall, tank farms, a potable water network, a wastewater network, and a treated sewage effluent network.

With the latest order, L&T continues its order-winning streak in West Asia, particularly in Saudi Arabia. For the September-23 ended quarter, the company earlier noted new order wins of Rs 89,153 crore, of which it said two-thirds were from international markets, with more than 80 per cent from West Asia, especially Saudi Arabia.

Projects like Amaala are part of the Gulf nation’s Vision 2030, an attempt to diversify and wean the world's top crude exporter off oil revenues.