Abu Dhabi Water & Electricity Authority (Adwea) is in discussions with Saudi Arabia’s Acwa Power in relation to its eligibility to bid for the Shuweihat S3 independent power project (IPP).

According to sources close to the deal, the developer’s status as a foreign company is under scrutiny.

In the original request for qualification (RFQ) for the Shuweihat S3 IPP, it states that, “Each applicant, or if in a consortium, each consortium member, should be a foreign company and/or entity.”

While Acwa Power is registered in Saudi Arabia, the company’s presence in the UAE has resulted in a review by Adwea of the company’s prequalified status.

A total of 15 companies were prequalified for the power project in March (MEED 7:3:10):

  • Acwa Power (Saudi Arabia)
  • General Electric (US)
  • International Power (UK)
  • Korean Electric Power Company (South Korea)
  • Marubeni (Japan)
  • Mitsubishi Corporation (Japan)
  • Mitsui & Co (Japan)
  • Powertek Berhad (Malaysia)
  • Sembcorp Utilities (Singapore)
  • Shikoku Electric Power Company (Japan)
  • Sojitz Corporation (Japan)
  • Suez Tractebel (Belgium)
  • Sumitomo Corporation (Japan)
  • Tenaga Nasional Berhad (Malaysia)
  • Tokyo Electric Power Company (Japan)

Interested parties have until 15 July to respond to the RFP, which is two weeks later than the originally scheduled 30 June deadline.

Adwea is planning to bring Shuweihat 3 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.

The facility will be Adwea’s first IPP, as its previous projects have all included water supply.