GDF Suez, GIC to develop $2bn Al Dur project
Manama, August 28, 2008
Leading energy provider GDF Suez has joined hands with Gulf Investment Corporation (GIC) to develop the $2 billion Al Dur Independent Water and Power Producer (IWPP) project in Bahrain.
The project will be funded by a mix of equity capital and project finance through a consortium of regional and international banks.
The consortium of GDF Suez and GIC executed the agreement for the project with the government of Bahrain, following an international competitive tendering process.
The project, awarded by the Ministry of Finance, will be developed on a BOO (build, own, operate) basis.
Located at Al Dur, on the southeastern coast of Bahrain, the project will substantially increase power and water supplies in the kingdom. It is the third IWPP being developed in the kingdom.
The project will deliver electricity and water to the Electricity and Water Authority (EWA) under a 20-year power and water purchase agreement (PWPA) commencing on June 1, 2011.
The first phase of the project will start in the summer of 2010, with full capacity being achieved in summer 2011.
The project consists of a Combined Cycle Gas Turbine power plant and a Reverse Osmosis (RO) technology desalination plant together with all support facilities such as seawater intake and discharge structures and gas connection facilities.
The complex will have a capacity of 1,234 MW of power and 218,200 cu m per day (48 million imperial gallons per day) of water.
GDF Suez and GIC said they have selected Hyundai Heavy Industries (HHI) as the EPC contractor of the project.
General Electric will supply the power plant turbines and Degremont will supply and install the RO desalination facility.
'The fact that GDF Suez is involved in each of the three I(W)PP projects in Bahrain demonstrates the company's commitment to investing in the Kingdom of Bahrain,' said Dirk Beeuwsaert, GDF Suez Energy International's chief executive officer.
'The Middle-East needs to build substantial additional power and water capacity and we have proven to be a reliable and competent partner to do so,' he said.
Hisham Al-Razzuqi, CEO of GIC, said: 'GIC is a co-developer of five power and water projects in the GCC with a total asset base of approximately $9 billion.
'Winning Al Dur IWPP project reinforces GIC's role in supporting private sector participation in the development of the GCC economies.' - TradeArabia News Service