Award approaches for H3

16 January 2006
Dubai Electricity & Water Authority (DEWA) is expected to award the first major package on the phase 3 development of the open cycle H station at Al-Aweer by the end of February, after bids were submitted for the 400/132-kV substation and associated works contract. Bids for the other major contract, covering the 680-830-MW power island, are due on 17 January (MEED 23:9:05).

The frontrunners for the turnkey substation package are Germany's Siemens, which offered a discounted main price of AED 382 million ($104 million), and Japan's Mitsubishi Electric, which priced the work at AED 449 million ($122 million). The other two bidders are the local Emirates Trading Agency (ETA), at AED 467 million ($127 million), and France's Areva T&D at AED 479 million ($130 million).

Bids are also under evaluation for the smaller overhead line package, which is valued at about $10 million. The bidders are ETA, Mitsubishi and the local Emirates Electrical Engineering (EEE).

The consultant on the phase 3 project is the UK's Mott MacDonald.

The H3 project is being undertaken to address a surge in Dubai power demand, which is growing at more than 12 per cent a year. Germany's Fichtner was appointed consultant last September for the grassroots M station, which will be implemented in phases and have eventual capacity of 2,000 MW and 60 million gallons a day. Phase 1 is expected to go for tender in the second quarter. In addition, DEWA is understood to be at an early stage of considering an even larger co-generation plant with generating capacity of up to 3,000 MW.

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