Barka 2 developer chosen

13 October 2006

A group headed by Belgium's Suez Tractebel has been named preferred bidder on the Barka 2/Rusayl independent water and power project (IWPP) in Oman. Foreign developer selection is also close on the Mesaieed independent power project (IPP) in Qatar, with Japan's Marubeni Corporation the frontrunner, while revised proposals were due on 4 October for the Jubail IWPP in Saudi Arabia (MEED 29:9:06).

Tractebel beat off competition from Marubeni on Barka 2/Rusayl. The next step in the project's implementation will be the signing of the key project agreements, expected by early November. First power is due in the second quarter of 2008, with project completion set for a year later.

The Brussels-based company is heading a developer group, which includes Abu Dhabi's Mubadala Development Company. It is supported by South Korea's Doosan Heavy Industries & Construction as its nominated EPC contractor and France's Degremont as its nominated EPC subcontractor, and HSBC and Sumitomo-Mitsui Banking Corporation as its bank group.

The project entails the acquisition of the existing 668-MW Rusayl plant and construction of a 700-MW, 26 million-gallon-a-day plant at Barka. The Barka desalination plant will be the first IWPP in the Gulf to use reverse osmosis (RO) technology.

At Mesaieed, Marubeni has been competing against groups headed by Tractebel and the UK's International Power for the post of foreign developer on the 2,000 MW power plant, which is expected to cost about $1,300 million to build. A formal announcement on a developer selection is expected in mid-October. Marubeni has been supported in its bid by Spain's Iberdrola, the nominated engineering, procurement and construction (EPC) contractor, and Calyon as its banker.

www.meed.com/power&water

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