Race begins for Fujairah 2
Bidding has begun on the Fujairah 2 independent water and power project (IWPP), following the release of the request for proposals by Abu Dhabi Water & Electricity Authority (ADWEA).
A total of 21 developers are prequalified to submit proposals for the 2,000-MW, 130 million gallon-a-day grassroots plant. However, given its size, nearly all of the qualifiers are expected to form groups (MEED 17:11:06; 29:9:06). Proposals are due on 29 March. In the first half of May, the utility is planning to draw up a shortlist of bidders for detailed negotiations and sign the key project agreements in July. Financial close is set for the fourth quarter of 2007 with plant commissioning scheduled for the third quarter of 2010.
Several bidding groups formed in advance of the release of the RFP. They include Dubai-based AES Oasis with Japan's Sumitomo Corporation, the UK's International Power with Japan's Marubeni Corporation, and Singapore's SembCorp Utilities with Sojitz Corporation and Kyushu Electric Power Company, both of Japan.
The successful bidder on Fujairah 2 will take a 40 per cent stake in a new project company set up to develop the project on a build-own-operate basis. The remaining 60 per cent will be owned by ADWEA and Abu Dhabi National Energy Company (Taqa). ADWEA has also stated that, for the first time on one of its IWPPs, bidders can propose reverse osmosis technology for the desalination component, provided it is in a hybrid configuration with thermal technology. Alternative technologies are multi-effect distillation or multi-stage flash.
The advisory team on Fujairah 2 is made up of HSBC (financial), Fichtner (technical) and White & Case (legal).
www.meed.com/powerwater
This content is only available to full MEED package subscribers (MEED magazine and MEED.com).
If you are already a subscriber to the MEED package and have activated your online subscription, sign in
If you are already a subscriber to the MEED package but have not activated your online subscription, please activate here
If you would like to subscribe to the full MEED package and get access to the whole of the website, please subscribe here
If you are a MEED magazine only subscriber and would like full access to MEED.com, please contact Customer Services who will upgrade your subscription.
