Abu Dhabi Water & Electricity Authority (Adwea) has received bids from five groups to build the Shuweihat S3 independent power project (IPP).

Bidders were asked to submit two bids. For the first bid, the operations and maintenance (O&M) work will be performed by a third party. This structure has been used for previous independent water and power projects (IWPPs) in Abu Dhabi.

For the second bid, the O&M work will be carried out by the project company itself through a management and operating services agreement with a company formed by the bidder.

Each set of prices has a figure for the first five years of the project and another figure for 20 years covering the full term of the construction, operation and maintenance period. A 15-year power purchase agreement (PPA) is included as part of the scheme.

The bidders and prices are:

  • Sumitomo Corporation (Japan)/Korean Electric Power Company (South Korea): 473.1MW early power capacity and 1,600MW full capacity – 10.866 fils/kWh (5 years) and 12.865 fils/kWh (20 years)
  • Marubeni/Kansai/Osaka Gas (all from Japan): 436.8MW early power capacity and 1,600MW full capacity – 11.13027 fils/kWh (5 years) and 13.05818 fils/kWh (20 years)
  • International Power (UK)/ Tokyo Electric Power Company (Japan): 432MW early power capacity and 1,544MW full capacity – 11.406 fils/kWh (5 years) and 13.437 fils/kWh (20 years)
  • Mitsui & Co (Japan): 547.8MW early power capacity and 1,600MW full capacity – 11.618 fils/kWh (5 years) and 13.717 fils/kWh (20 years)
  • GDF Suez (France): 445MW early power capacity and 1,600MW full capacity – 11.9126 fils/kWh (5 years) and 13.9958 fils/kWh (20 years)

The amended request for proposals (RFP) issued in June said the second bids would be considered if the first bids were similar. Three of the five bidders submitted for the second option:

  • International Power (UK)/ Tokyo Electric Power Company (Japan): 432MW early power capacity and 1,544MW full capacity – 11.439 fils/kWh (5 years) and 13.486 fils/kWh (20 years)
  • Sumitomo Corporation (Japan)/Korean Electric Power Company (South Korea): 473.1MW early power capacity and 1,600MW full capacity – 11.021 fils/kWh (5 years) and 13.072 fils/kWh (20 years)
  • Marubeni/Kansai/Osaka Gas (all from Japan): 436.8MW early power capacity and 1,600MW full capacity – 11.13027 fils/kWh (5 years) and 13.05818 fils/kWh (20 years)

International Power and Tokyo Electric Power Company’s bid is backed by Germany’s BayernLB and Japan’s Sumitomo Mitsui Banking Corporation. The partnership is working with Japan’s Toshiba as an engineering procurement and construction (EPC) contractor.

The Marubeni-led bid secured financial backing from France’s Credit Agricole and the UK’s Standard Chartered. Hyundai Engineering & Construction of South Korea was selected by the bidding group for EPC work.

Mitsui’s bid is backed by France’s Societe Generale and Bank of Tokyo Mitsubishi (BTMU). Japan-based Mitsubishi Heavy Industries is the EPC contractor.

Sumitomo Corporation and Korean Electric Power Company (Kepco) partnered with France’s BNP Paribas and Japan’s Mizuho for their bid. The group is understood to be collaborating with South Korea’s Daewoo Engineering & Construction and Germany’s Siemens for the EPC work.

France’s GDF Suez has teamed up with Saudi Arabia’s Samba and France’s Natixis.

Adwea prequalified 15 firms to bid on the development of the project. It plans to bring Shuweihat S3 online in mid-2013, with a successful developer holding 40 per cent of the equity in the project and Adwea holding the remaining 60 per cent.

Shuweihat S3 will be Adwea’s first IPP, as its previous projects have all included a water desalination unit. Adwea is expected to announce the winning bidder around late-September.

According to industry sources, the project will be mothballed during the winter months once Abu Dhabi’s nuclear project is online. The shutdown is to occur when there is potential for savings on O&M. The project company would receive additional payments from the shutdown and restart.