Failaka BOT PQ notice out

02 February 2006

The Ministry of Public Works (MPW) through its Mega Projects Agency (MPA) has issued the prequalification notice for the concession to provide power and potable water to Failaka island. Interested developers have until 15 March to submit their applications (MEED 14:10:05).

The 20-year build-operate-transfer (BOT) concession will involve the construction of 180 MW of power generating capacity and 1.25 million gallons a day of desalination. The cogeneration plant will be built on the island, which the government plans to develop as a tourist destination. The successful developer will be given an additional five years to build the facility before the concession term begins.

The plant's offtake will be guaranteed by the government, which will sell it on to the developer consortium selected to build and operate the tourist infrastructure. Nine investor groups were prequalified in late 2004 to bid for the estimated $3,300 million, 20-year-plus-BOT infrastructure concession, but concerns over the masterplan and terms of reference have seen the project delayed (MEED 11:11:05; 16:9:05).

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