Larsen & Toubro (L&T) has secured a significant order in Saudi Arabia worth over Rs 5,000 crore for the development of power generation and water systems. The company has been selected as the turnkey Engineering, Procurement, and Construction (EPC) contractor for the AMAALA project in the Red Sea region. This project involves the establishment of diverse systems for renewable energy generation and utilities.
Situated within the Prince Mohammed bin Salman Natural Reserve along Saudi Arabia's northwestern coast, AMAALA stands as an ultra-luxury destination. While Larsen & Toubro (L&T) has not revealed the precise value of the order, the statement suggests that it falls within the range of Rs 5,000 crore to Rs 10,000 crore.
As per L&T's announcement, the concession agreement for the fully integrated utility project in AMAALA has been signed by a consortium comprising the United Arab Emirates' clean energy leader, Masdar, and the French electricity utility EDF. L&T has, in turn, engaged in an Engineering, Procurement, and Construction (EPC) agreement with the project sponsors, namely EDF and Masdar.
The awarded project comprises an off-grid renewable energy system, featuring approximately 250MWp Solar PV plant and over 700MWh Battery Energy Storage System. The scope for water systems includes constructing a 37 MLD Seawater Reverse Osmosis Plant, 6 MLD sewage treatment plants, marine works including intake and outfall, tank farms, potable water network, wastewater network, and treated sewage effluent network.
Securing this recent order, L&T extends its successful trend of winning contracts in West Asia, specifically in Saudi Arabia. In the quarter concluding in September 2023, the company had disclosed new orders amounting to Rs 89,153 crore. Notably, a significant portion, two-thirds to be precise, originated from international markets, with a substantial majority, exceeding 80 percent, attributed to West Asia, particularly Saudi Arabia.