Umm al-Nar IWPP resurfaces

15 October 2001

Abu Dhabi Water & Electricity Authority (ADWEA) is understood to have returned to its original plan to develop the existing Umm al-Nar power and desalination complex as the emirate's next independent water and power project (IWPP), in preference to building a new grassroots cogeneration plant at Taweelah. Sources say that the decision to revert to the Umm al-Nar project was taken in early October and came as the result of ADWEA's desire to optimise about 70 million gallons a day of new desalination capacity installed at the site over the past two years (MEED 21:9:01).

About 1,000 MW of new generating capacity is expected to be installed at Umm al-Nar under the IWPP. Extensive decommissioning is also planned, in view of the age of much of the installed capacity at the site. The request for proposals for the Umm al-Nar IWPP is due to be sent out to developers in early December. In keeping with previous IWPPs, developers will submit proposals on the basis of taking a minority stake in a new utility company, which will acquire and expand the plant on a build-operate (BO) basis.

Contractors say that, given the rising water demand in Abu Dhabi emirate, ADWEA may look at installing more desalination capacity at Taweelah at a later date.

The advisory team for the IWPP is made up of Credit Suisse First Boston, Germany's Fichtnerand the US' White & Case(MEED 10:8:01).

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