GDF Suez, GIC Awarded $2Bn Al Dur 1 IWPP Contract
A consortium composed of GDF Suez (50%) and Gulf Investment Corporation (GIC – 50%) announced on 28 August that they were awarded the contract and signed a 20-year power and water purchase agreement for Al Dur 1 independent water and power project (IWPP) in Bahrain. Phase 1 of the project, to be developed on a BOO (build, own, operate) basis, will start in the summer of 2010, with full capacity to be achieved in summer 2011. Al Dur 1 is expected to start delivering electricity and water to the Electricity and Water Authority (EWA) on 1 June 2011. The project consists of a combined cycle gas turbine power plant and a reverse osmosis technology desalination plant together with all support facilities. Al Dur 1 will have a capacity of 1,234 mw of electricity and 218,200 cu ms/day of water. GDF Suez and GIC selected Hyundai Heavy Industries as the engineering, procurement, and construction (EPC) contractor for the project. General Electric will supply the power plant turbines and Degrémont will supply and install the reverse osmosis desalination facility.
The project is expected to cost $2bn, which will be funded by a mix of equity capital and project finance through a consortium of regional and international banks. Al Dur is the third IWPP being developed in Bahrain. GDF Suez is also involved in the other two IWPPs: Al Ezzel (45%) and Al Hidd. Bahrain plans to develop another three power and water plants at Al Dur in the next 20 years, said GDF Suez. Phase 2 (Al Dur 2) is expected to be launched in 2009, added GDF Suez. On 30 July, GDF Suez was awarded the contract and signed a 20-year power and water purchase agreement for the Shuweihat 2 power generation and seawater desalination plant, a major IWPP in Abu Dhabi (MEES, 11 August).
Copyright MEES 2008.
