Fujairah 2 power purchase deal signed
Abu Dhabi, August 2, 2007
Abu Dhabi Water and Electricity Company (ADWEC) has signed a 20-year power and water purchase agreement (PWPA) for the entire output from the Fujairah F2 IWPP.
The agreement was signed by the project partners International Power, the Abu Dhabi Water and Electricity Authority (Adwea) and Marubeni Corporation of Japan with ADWEC.
The plant will be owned by the Fujairah Asia Power Company in which International Power has a 20 per cent equity interest, with 60 per cent held by Adwea and 20 per cent by Marubeni. The facility will be operated by a 50:50 joint venture between International Power and Marubeni.
The total project cost is estimated to be $2.8 billion, which will be funded by a mix of debt and equity in an 80:20 ratio. For its 20 per cent share, IPR’s equity investment will be $112 million. Financial close is expected by December 31, 2007.
Philip Cox, chief executive of International Power, said: “We are very pleased to have signed this agreement, as the Fujairah F2 project builds on our growing portfolio in the Middle East where we have significant greenfield development and operational experience.”
The Fujairah F2 IWPP, a greenfield development project, will produce 2,000 MW of power and 130 MIGD of water on completion. The project is expected to be fully operational by the end of 2010. The plant will use five high efficiency Alstom GT26 gas turbines in combined cycle mode, and 12 SIDEM 8.3 MIGD Multi Effect Distillation desalination units, together with a 30 MIGD Reverse Osmosis desalination plant.
Fuel will be provided by ADWEC in the form of natural gas on a pass-through basis under the PWPA. - TradeArabia News Service