The team of the UK's International Power (IP), Japan's Sumitomo Corporationand Belgium's SuezTractebelwas named preferred bidder for the brownfield independent water and power project (IWPP) at Hidd on 14 December, following the opening of commercial bids from three bidding groups. The client is the Finance Ministry (MEED 11:11:05).
The project entails the acquisition of the existing 1,000-MW, 30 million-gallon-a-day (g/d) power and desalination complex and the installation of 60 million g/d of new desalination capacity. The IP/Sumitomo/Tractebel team offered a price of $738 million, 3.8 per cent higher than the $710 million quote from Malaysia's Malakoff Berhadwith Saudi Arabia's National Power Company. The third bidder is the group of Marubeni Corporationand JGC Corporation, both of Japan, and Kuwait-based Gulf Investment Corporation (GIC) at $667 million. The preferred bidder will now enter detailed negotiations with the government. According to the project timetable, the 20-year power and water purchase agreement (PWPA) is due to be signed on 11 January, with financial close scheduled by the end of March. The IP/Sumitomo/Tractebel team is backed by a bank group led by Royal Bank of Scotland. Its nominated engineering, procurement and construction (EPC) contractor is France's Sidemand the new-build capacity, which will consist of 10 6 million-g/d multi-effect distillation (MED) units, is due for commissioning in the summer of 2007. Tractebel and GIC are carrying out the kingdom's first private power scheme, the Al-Ezzal independent power project (IPP). The government's advisory team on both projects is BNP Paribas, Freshfields Bruckhaus Derringerand the UK's Mott MacDonald. www.meed.com/powerwater
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