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Saudi utility developer Acwa Power has successfully refinanced $580m of existing debt for Bahrain's Al Dur Phase 2 independent water and power project (IWPP).

The project, which has an investment value of more than $1bn, uses seawater reverse osmosis technology to produce 227,000 cubic meters a day of desalinated water and combined cycle gas turbine technology with the capacity to generate 1,500MW of power.

The project lenders include:

• Ahli United Bank (local)
• APICORP (Saudi Arabia)
• Al Rajhi Bank (Saudi Arabia)
• Arab National Bank (Saudi Arabia)
• Banque Saudi Fransi (Saudi Arabia)
• Gulf International Bank (local)
• KfW Ipex-Bank (Germany)
• National Bank of Bahrain (local)
• Riyad Bank (Saudi Arabia)
• Standard Chartered Bank (UK)

The Al Dur 2 IWPP reached financial close in 2019 and began commercial operation in June 2022.

It has been crucial in enhancing Bahrain’s energy and water security.

Bahrain’s Electricity & Water Affairs Ministry selected a team led by Acwa Power to develop the project in 2018.

The project company, Haya Power & Desalination Company, comprises Acwa Power, which maintains a 60% share, Japan’s Mitsui with a 30% holding and the local Almoayyed Contracting Group with a 10% stake.

A consortium of China’s Sepco 3, Power China and France’s Sidem is the project’s engineering, procurement and construction contractor, while Acwa Power subsidiary Noma is the operation and maintenance contractor.