Kingdom emerges as world class investment destination
Bahrain has emerged as a world class investment destination with offering an efficient, transparent and effective system to foreign investors, Shafiq J Ali, Chairman Al Ezzel Power Company said yesterday.
Shafiq Ali, who is also director corporate finance at Gulf Investment Corporation, on the sidelines of the official opening of $500 million Al-Ezzel Power Plant by the Crown Prince Shaikh Salman bin Hamad Al Khalifa yesterday, said that GIC's total investment assets valued at $3 billion, a proof of the Kingdom's attractive climate.
The Crown Prince officially inaugurated the second and final phase of the Al Ezzel Power Plant, Bahrain's first Independent Power Plant (IPP) and visited the plant control room and started one of the gas turbines. He also toured the plant and discussed particular aspects of its operations with senior company officials.
The state-of-the-art combined cycle power plant, located in the Hidd Industrial Area, will supply electricity to the Ministry of Electricity and Water under a 20-year Power Purchase Agreement that was signed on July 31st 2004. The speed and efficiency of the competitive bid-and-award process and of the financing won Al Ezzel Power Company (AEPC) three international awards.
Site work started in December 2004 with Siemens Power Generation as the single-source turnkey contractor to AEPC. Phase I of the project was completed on time in late April 2006 and added 470 megawatts of open cycle gas turbine generating capacity to the national grid. Phase II provides an additional 480 megawatts in combined cycle mode to bring the total capacity of 950 megawatts. Both phases were timed to start production before the summer months. AEPC now accounts for one third of the installed capacity available to the Bahrain grid.
The project was developed, and is equally owned, by Suez Energy International and GIC. The Pension Fund Commission of Bahrain joined as a shareholder soon thereafter and acquired a 10 per cent stake from the developers.
Shafic said: "Phase 1 was completed in 17 months. We have already delivered over 1.3 million MWH and achieved a plant availability of 99.7 per cent."
"Construction on the second and last phase is complete. In the coming weeks, the plant will increase power output as demand rises with summer temperatures. We are confident that Phase II will maintain our reputation as a reliable supplier of electrical energy.
Hisham Al Razzuqi, Chief Executive Officer GIC, said "The way in which this project was planned and implemented, the involvement of the private sector from the region alongside international investors, and the support extended by various ministries and organisations are a testimony to the modern nature of the economy of the Kingdom. Al Ezzel is one of the best power generation projects in the world."
The event was addressed by Dirk Beeuwsaert CEO of Suez Energy International and said that the decision to privatise power generation in Bahrain was driven by the Kingdom's increasing population and rapid economic development and SUEZ Energy International, as an independent developer, fully supports this strategy.
By Mehmood Rafique Business Correspondent
© Bahrain Tribune 2007
