The group in a statement called the scheme the "world's largest power and desalination project," offering capacity of 2,750 mega watts (MW) of electricity and and 800,000 cubic metres of drinking water per day.

It is to supply water and electricity to industrial and non-industrial customers in Jubail and eastern province.

The consortium will own 60 percent of the project, which is to cost approximately 3.4 billion dollars (2.6 billion euros).

The sale of the plants entire energy and water output is guaranteed in a 20 year power and water purchase agreement.

The contract is expected to generate total turnover of 8.5 billion dollars in the period.

The project represents approximately 10 percent of current total installed capacity in Saudi Arabia of 29,000 MW, which is planned to increase to 60,000 by 2020 to meet the kingdom's rapidly increasing energy demand.

The Marafiq will also be a substantial contributor to the country's water supply when it comes online in July 2009.

Suez is now the leading private developer in the Middle East, managing 8,200 MW of installed power capacity, the group said.

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