Companies established for Taweelah B IWPP

07 January 2005
Implementation of the Taweelah B independent water and power project (IWPP) has taken another step forward with the establishment by Emiri decree of two new companies to participate in the brownfield IWPP. According to the decrees issued by Abu Dhabi ruler and UAE President Sheikh Khalifa bin Zayed al-Nahyan, Al-Taweelah United Powerwill hold a 60 per cent stake in the project, and Asia-Gulf Power Holding Companythe remaining 40 per cent (MEED 8:10:04).

The preferred developer bidding consortium, made up of Japan's Marubeni Corporation, US-based BTU Ventures, JGC Corporation, also of Japan, and Malaysia's Pendekar Power, are the shareholders in Asia-Gulf Power. Al-Taweelah United is wholly owned by Abu Dhabi Water & Electricity Authority (ADWEA). The next step in the project's implementation will be the signing of the key project agreements, which is now expected to take place in the first half of January. Financial close is scheduled for the second quarter.

The Asian consortium, which has Germany's Siemensand Italy's Fisia Italimpiantias its nominated engineering, procurement and construction (EPC) contractors, entered into negotiations with ADWEA in October after having submitted in July the highest price of $1,690 million for the brownfield IWPP.

The project involves the acquisition of the existing 1,070-MW, 100 million-gallon-a-day (g/d) B station and expanding it on a build-operate basis to take total output up to 2,000 MW and 160 million g/d.

ADWEA's advisory team on B is Germany's Fichtner (technical), HSBC (financial), White & Case(international legal) and Simmons & Simmons(local legal).

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