EXCLUSIVE: Bahrain invites prequalification for major IWPP

31 May 2017

Cogeneration facility will have power capacity of up to 1,500MW and 50-MIGD desalination component

Bahrain’s Electricity & Water Authority (EWA) has invited developers to prequalify for the planned Al-Dur 2 independent water and power project (IWPP).

Developers have been invited to submit prequalification entries by 21 June. MEED reported in April that the client was intending to begin the prequalification process in May.

The project is planned to have a capacity of 1,200-1,500MW and a desalination component of 50 million imperial gallons a day (MIGD). Under the proposed contract, the work will involve the design, procurement, construction and commissioning of the plant, gas connection facilities and the seawater itnake/outfall facilities. The contract will also aocver the operation and maintenance of the plant and the seawater intake/outfall facilities. 

EWA will purchase the power under a 20 year power purchase agreement (PPA), with the power capacity due to be online by June 2020. Water from the plant will be required ot come online by June 2021.

MEED reported in November that the EWA had appointed the Netherlands’ KPMG Fakhro as financial adviser for the Al-Dur 2 scheme. The UK’s Trowers & Hamlins is legal adviser for the project, with Canada’s WSP having been appointed as technical adviser.

KPMG was the low bidder out of three bids opened on 10 November, with a price of BD616,375 ($1.6m).

Peak demand growth for electricity in Bahrain reached 8.1 per cent in 2014, and was recorded at 3.5 per cent in 2015. The EWA is predicting consumption will continue to increase by an annual average of up to 6.4 per cent until 2020.

MEED reported in late 2016 that the developers of the previous Al-Dur IWPP, led by France’s Engie, were still in discussions with banks over refinancing the $2.2bn scheme. A $1.6bn eight-year hard mini-perm matures in 2017, but may be extended.

The $2.2bn IWPP has a generation capacity of 1,234MW and a desalination capacity of 181,700 cubic metres a day (cm/d) of water. It was fully commissioned in 2012, and has been developed under a 20-year power and water purchase agreement.



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