GDF Suez signs Abu Dhabi utility purchase deal
Abu Dhabi, July 3, 2014
GDF Suez has signed a 25-year power and water purchase agreement (PWPA) with the Abu Dhabi Water and Electricity Company (Adwec) for its Mirfa Independent Water and Power (IWPP) project to be built at a cost of $1.5 billion.
GDF Suez holds a 20 per cent equity interest in the project, while the remaining 80 per cent is held by Abu Dhabi Water and Electricity Authority (Adwea).
Located 120 km from Abu Dhabi, the Mirfa project is the emirate’s tenth facility to be built under the Public-Private Partnership model. Adwec is the single buyer and seller of Water and Electricity of Abu Dhabi.
The project will involve the acquisition of certain existing water and power facilities, the development, design, engineering and construction of new power and water facilities, as well as the operation of the plant.
When finished, and with the existing and new facilities fully integrated, Mirfa IWPP will have a total power capacity of 1,600 MW and a seawater desalination capacity of 238,665 cu m/day.
Gerard Mestrallet, the chairman and CEO of GDF Suez, said: "We are pleased to successfully formalise the framework for our exclusive partnership with ADWEA for the Mirfa project, our sixth development in the UAE."
"This new project will allow us to pursue our growth strategy in the region and to meet the increasing demand for both electricity and water in the emirates," he added.
GDF Suez has selected a turnkey EPC contractor consortium comprising Hyundai Engineering & Construction Company and Hyundai Engineering from Korea and Ansaldo Energia SpA from Italy.
Degremont, a subsidiary of Suez Environnement, will be responsible for the new seawater Reverse Osmosis (RO) facility as a subcontractor to the EPC contractor. Commercial operation of the project is expected on a phased basis between 2016 and 2017.
The project is targeted to satisfy Abu Dhabi’s rising demand for electricity and water as well as supporting the development of the UAE’s Northern Emirates.
The project will be funded by a mix of debt and equity. The debt requirement for the project shall be met through funding from a combination of local and international banks, with commitments currently oversubscribed.-Tradearabia News Service