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Indian construction firm L&T wins major EPC contract in AMAALA

The construction arm of India’s Larsen & Toubro has secured an engineering, procurement, and construction contract for setting up systems related to renewable energy generation and utilities in Saudi Arabia’s AMAALA project.

The consortium of UAE’s Masdar and France-based EDF signed the concession agreement in September 2023 for the fully integrated utility project with the developers of AMAALA.

L&T has now entered into an EPC agreement with EDF and Masdar, according to a statement.

The Indian multinational conglomerate stated that the awarded project encompasses an optimized off-grid renewable energy system, including a 250-megawatt peak solar photovoltaic plant and a 700-MW-hour battery energy storage system.

The scope for power systems also involves biofuel-based internal combustion engines, three gas-insulated substations, high-voltage transmission lines, and medium-voltage distribution networks.

On the other hand, the scope for water systems in AMAALA involves constructing a seawater reverse osmosis plant capable of handling 37 megaliters per day, six MLD sewage treatment plants, marine works including intake and outfall, tank farms, as well as potable water network, wastewater network, and treated sewage effluent network.

The company did not disclose the financial details of the deal.

Madhava Das, whole-time director and senior executive vice president of utilities at L&T, said: “The award of this prestigious contract stands testimony to the synergistic strength of diverse offerings of L&T Construction in providing innovative solutions to customers keen on sustainable, clean, and reliable electricity and water systems.”

AMAALA is one of the most ambitious tourism projects in Saudi Arabia’s Red Sea region, as the Kingdom is steadily diversifying its economy away from oil, aligned with the goals outlined in Vision 2030.

The project spans an area of 4,155 sq. km and, upon completion, will feature 25 hotels, 900 luxury residential villas, apartments, and estate homes alongside high-end retail establishments, fine dining, wellness, and recreational facilities.

In August, Abdullah bin Taleb Swimming Pools Co. was given a contract to construct pools, spas, and other water feature works at Triple Bay in AMAALA.

According to a press statement, these water features will be constructed at two resorts operated by Rosewood Hotels and Resorts and InterContinental Hotels Group’s Six Senses.

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