Fujairah all set for IWPP

02 May 2006

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).

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