Industry sources say that the request for new prices came after the original bids submitted by five contractors in early September were well above the client’s budget of about AED 2,900 million ($790 million – MEED 2:11:01).

‘ADWEA has requested for the [supply and] installation of carbon steel pipelines instead of ductile iron pipelines,’ a source close to the project says. ‘This may reduce the overall cost by about 15-20 per cent.’

The 24-month project has been split into five packages. The total length of the carbon steel pipeline to be laid will be about 360 kilometres. The transmission line will have a capacity of 100 million gallons a day (g/d).

The three packages for which ADWEA has sought fresh prices are:

Package 1, for the supply and installation of a dual transmission line, with a total length of about 100 kilometres, from Shuweihat to Mirfa. The consultant is the UK’s Maunsell Consultancy Services.

Package 2, for the supply and installation of dual and single pipeline, with lengths of 140 kilometres and 10 kilometres respectively, which will link Mirfa to Mussafah. The consultant is Tebodin Middle East, part of the Tebodin group of the Netherlands.

Package 5, for supply and installation of a single water transmission line, with a length of 110 kilometres, to carry water from Shuweihat to Sila. The consultant is Italconsult of Italy.

Packages 3 and 4 cover the construction of pumping stations and water storage tanks at Mirfa and Mussafah.

The Shuweihat IWPP calls for the construction, on a build-own-operate (BOO) basis, of a 1,500-MW, 100 million-g/d grassroots plant. A US/UK joint venture of CMS Energy and International Power signed in mid August a 20-year power and water purchase agreement for the first phase of the scheme (MEED 24:8:01).

Plant construction is due to begin in March, with commercial operations scheduled to start by the summer of 2004. The plant will be built by the venture’s nominated engineering, procurement and construction (EPC) contractors – Germany’s Siemens for the power island, and Italy’s Fisia Italimpiantifor the desalination works.