Dubai yet to return Hassyan IPP bid bonds

09 July 2012

Independent power project was cancelled in April

Dubai Electricity and Water Authority (Dewa) is yet to return bid bonds to bidders on its shelved independent power project (IPP) at Hassyan.

The project reached an advanced stage in the tender process before it was deferred by Dewa in April. According to Dewa, the new capacity was no longer needed by the emirate. A source at Dewa has confirmed that the bid bonds have not yet been returned citing “internal processes”.

The two lowest bids were shortlisted to build the 1,500MW IPP in March. A group comprising Japan’s Marubeni, the UAE’s Taqa and South Korea’s SK submitted the lowest bid in December 2011. The group submitted a price of AED0.19057 ($0.052) a kWh.

Germany’s Siemens Power Ventures and Qatar Electricity & Water Company submitted the second most competitive bid at AED0.19134 a kWh and was the other group to be shortlisted.

A UK consortium of HSBC, Mott MacDonald and Clifford Chance were advising Dewa before the project was shelved.

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