Dubai Electricity and Water Authority (Dewa) has extended the deadline for bids to build the 1,500MW Hassyan 1 independent power project (IPP).

The deadline has now been set for 12 December following requests from several developers for more time.

“Dewa has received several requests from potential partners, who requested to extend the closing date of submitting the offers to complete their offers in a competitive way. Dewa has granted approval after having made sure that there won’t be any adverse affect on the project and therefore on Dubai’s needs of electricity due to this change,” says Saeed Mohammed al-Tayer, chief executive officer, Dewa.

Dewa prequalified 18 companies to bid for the project in May (MEED 20:5:11):

• Acwa Power (Saudi Arabia)
• Korea Electric Power Company (Kepco)
• GE International (US)
• Malakoff International (Malaysia)
• Marubeni Corporation (Japan)
• Mitsui (Japan)
• Qatar Electric Power Company (Qatar)
• Sembcorp Utilities (Singapore)
• Suez Tractebel (Belgium)
• Sumitomo Corporation (Japan)
• Abu Dhabi National Energy Company (Taqa) (UAE)
• Kharafi National (Kuwait)
• Lanco Infratech (India)
• Oasis International Power (UAE)
• Samsung Engineering (South Korea)
• Sojitz Corporation (Japan)
• Tata Power Company (India)
• United Infrastructure Developers Company (UK)

Several companies have prequalified on the condition that they partner with another company to bid for the project.

A UK consortium comprising bank HSBC, engineering firm Mott MacDonald and law firm Clifford Chance are advising Dewa on the project.

The IPP at Hassyan was previously to be developed as an independent water and power project (IWPP), but the desalination element was subsequently dropped. According to a source at Dewa, the decision to adjust the project plan was taken following a revised water demand forecast. While power continues to increase at a steady rate, meeting water needs in coming years will be less difficult.

The Hassyan 1 project will be constructed on a build-own-operate (BOO) basis. When complete, it will generate 1,400-1,600MW and is to use natural gas/distillate fuel. The project is expected to be commissioned in 2014. Dewa will buy all the power produced by the project.

The successful bidder will own 49 per cent of a special purpose company, which will be formed to own the project. The balance of 51 per cent will be owned directly or indirectly by Dewa.

The developer will be responsible for the development, financing, design engineering, procurement, construction, commissioning, operation and maintenance of the power plant and associated facilities, as well as fuel.

The Hassyan 1 IPP is expected to be followed by five or six similar independent projects as part of Dewa’s private power programme. The project was originally planned to be built on an engineering, procurement and construction (EPC) basis.