Tuesday, October 28, 2003

Al Mirfa, Abu Dhabi's fifth independent water and power project (IWPP), has been shelved and the Taweelah B plant is likely to be developed instead, top officials said yesterday.

At least 16 international companies had submitted their statements of qualifications to the Abu Dhabi Water and Electricity Authority (Adwea) and were awaiting the Request for Proposals (RFPs).

"The Al Mirfa power plant expansion will not take place now," a senior official of Adwea told Gulf News without specifying reasons.

"Adwea is evaluating the expansion of the Taweelah B plant and if it plans to go ahead then it might, in principle, consider the statements of qualifications of the same 16 companies who submitted for Mirfa," added the official.

The Taweelah B plant has a power generation capacity of 1,000 megawatts and 95 million gallons per day (gpd) of water.

However, the 16 international companies are awaiting the official word from Adwea. "An air of uncertainty hangs over Mirfa although we know it is being put on hold," said a senior executive of an international company that submitted the qualification statement for Al Mirfa.

"We do not know what form or shape Mirfa will take in the future but the talk is that the Taweelah B plant is gaining Adwea's attention just now," said another official closely involved with the power sector here.

The international companies are awaiting clarity on the issue.

"This is just a small hiccup. Up until now, Abu Dhabi's power privatisation programme has progressed remarkably well. We hope the Taweelah B plant plans unfold quickly to clear the air of uncertainty," added the official.

The Al Mirfa project entailed the purchase of the existing 192 megawatts and 38.7 million gpd Mirfa plant and adding 600-700 megawatts of generating capacity which would also provide steam for the existing desalination units.

Commissioning of the new power units was scheduled for May 2007.

Gulf News