MEED reported that Saudi Arabia local Najm al Jazeera Contracting Company a subsidiary of Al-Arrab Contracting Company has won a SAR 1 billion (USD 266 million) contract for the construction of a 300MW power plant in Tabuk in the northwest of the kingdom.

The project duration is two years and the plant is expected to be operational by October 2010, after which it will provide power to Tabuk and its neighboring areas.

As per report Najm al Jazeera will install four gas turbines procured from German's Siemens. The second power plant will begin operating by March 2010. The project was awarded on an EPC basis and includes all the equipment and plant works.

The scope of work covers the equipment, fuel tanks, installations and plant works, on an engineering, procurement and construction basis.

German based ILF Consulting Engineers is the consultant on the project and will carry out the design and procurement planning management work.

It is the second contract awarded to Najm al-Jazeera in recent months. In June, the company won a SAR 400 million contract to construct a 50MW power plant in the city of Duba, north of Jeddah on the Red Sea coast.