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Saudi Arabia is lining up competitors to bid against General Electric, the US industrial company, for its lucrative power plant work, Reuters reported on Thursday, citing informed sources.
State-owned Saudi Electricity Co (SEC) has qualified two US-based companies -- Power Systems Mfg LLC and Combustion Parts Inc. -- to provide service or parts for some of SEC's more than 50 GE-made F-class turbines.
SEC is also in talks with two other companies -- US' Chromalloy and Dubai's Al Masaood John Brown -- over investments to set up facilities to service its plants over many years, the report said.
The move aims to obtain the best possible prices for the Kingdom on large contracts with big companies when the contracts come up for renewal.
However, SEC has not yet offered any substantial F-class contracts to new bidders, and it is now known when it intends to seek bids, the sources informed.
In June, GE said it was planning to manufacture its latest series of high-technology power turbines in Saudi Arabia.
Meanwhile, sources said the SEC is also in the process of getting other companies involved in bidding for power plant services in order to get lower prices.
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