The key project agreements for the Fujairah independent water and power project (IWPP) are now expected to be signed by late May. Abu Dhabi Water & Electricity Authority (ADWEA) has completed the final round of negotiations with the first-ranked bidder, Singapore's SembCorp Utilities, and, as is its right under the terms of the request for proposals (RFP), has started negotiations with the second-ranked bidder, Belgium's Suez Tractebel (MEED 27:1:06).
SembCorp was the highest bidder at $1,343 million for the IWPP when proposals were submitted by developers in mid-November, followed by Suez Tractebel at $1,338 million. Two other developer groups submitted bids.
The successful bidder will take a 40 per cent stake in a new project company which will acquire the existing 662-MW, 100 million-gallon-a-day co-generation plant and expand it on a build-own-operate (BOO) basis by 225 MW.
The advisory team on Fujairah consists of Germany's Fichtner (technical), HSBC (financial), White & Case (international, legal) and the local Simmons & Simmons (legal).