Bahrain’s Electricity & Water Authority (EWA) is preparing to open commercial bidding for the planned Al-Dur 2 independent water and power project (IWPP).

According to sources close to the project, advisers to the client have recommended that the technical proposals from both bidders have passed the technical evaluation, and commercial envelopes will be opened following approval from the tender board.

MEED reported in July that the two bidders had been invited to submit technical clarifications on proposals, following the submission of bids on 27 June.

The two groups vying for the contract are:

• Acwa Power (Saudi Arabia) / Mitsui (Japan) / EPC: Siemens (Germany) and Sepco 3 (China)
• Sumitomo (Japan) / GIC (Local) / Kepco (South Korea) / Posco Energy (South Korea) / EPC: Doosan (South Korea).

The planned Al-Dur 2 project will 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 intake/outfall facilities. The contract will also cover 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 come online by June 2020. Water from the plant will be required to come online by June 2021.

MEED reported in November 2017 that EWA had appointed the Netherlands’ KPMG Fakhro as financial adviser for the Al-Dur 2 scheme. The UK-based Trowers & Hamlins is legal adviser for the project, with Canada’s WSP appointed as technical adviser. KPMG was the low bidder out of the three that 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. EWA predicts consumption will continue to increase by an annual average of up to 6.4 per cent until 2020.