12 July 2006
Six-month-old Hidd Power Company (HPC) is "already making profits", according to a senior company official.
"We are making money. Our (account) books prove that," David Hadfield, Executive Managing Director, HPC, told Bahrain Tribune yesterday.
In its largest ever privatisation deal, the Bahrain government had sold the Hidd Power and Water Station to HPC for $738.2 million in January this year. The private company signed a 20-year agreement to supply power and water to the government. HPC, as per the agreement, is bound to upgrade and expand the existing facility.
HPC took over the operations of the power plant on January 24, 2006 - a day after the Power and Water Purchase Agreement was signed.
HPC is a joint venture formed by UK-based International Power, Belgium's Suez Energy and Japan's Sumitomo Corporation. While the UK firm owns 40 per cent stake in the joint venture firm, Suez Energy and Sumitomo equally share the rest.
The joint-venture firm handed over a cheque worth $738.2 million to the government at a ceremony held at the Diplomat Radisson SAS Hotel yesterday. Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance, received the cheque on the government's behalf from Ranal Spears, Chairman, HPC.
The joint venture firm is investing $500 million in the plant to expand the existing 30 Million Imperial Gallons per Day (MIGD) water desalination plant to a 60 MIGD facility.
"The first phase of the expansion, which will increase the capacity of the existing facility by 12 MIGD, will be ready by April 2007," Hadfield said. "The final phase will be ready by November 2007," he added.
According to a Press statement issued by International Power in January 2006, the engineering, procurement and construction contract for the 60 MIGD desalination expansion has been awarded to SIDEM. The fuel for the plant, according to the statement, will be provided by the Bahrain Petroleum Company (BAPCO) under a separate 20-year Natural Gas Supply Agreement.
In April, a $1 billion project financing deal was announced between HPC and the Japan Bank for International Cooperation (JBIC). The loan agreement is co-financed with six financial institutions including Gulf International Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation.
Hadfield said that the commercial contract of HPC starts only from November 2007.
Hidd Power and Water Station is the second power plant to be privatised in the Kingdom. The Al Ezzel Power plant was sold to a joint-venture company in 2004.
Six-month-old Hidd Power Company (HPC) is "already making profits", according to a senior company official.
"We are making money. Our (account) books prove that," David Hadfield, Executive Managing Director, HPC, told Bahrain Tribune yesterday.
In its largest ever privatisation deal, the Bahrain government had sold the Hidd Power and Water Station to HPC for $738.2 million in January this year. The private company signed a 20-year agreement to supply power and water to the government. HPC, as per the agreement, is bound to upgrade and expand the existing facility.
HPC took over the operations of the power plant on January 24, 2006 - a day after the Power and Water Purchase Agreement was signed.
HPC is a joint venture formed by UK-based International Power, Belgium's Suez Energy and Japan's Sumitomo Corporation. While the UK firm owns 40 per cent stake in the joint venture firm, Suez Energy and Sumitomo equally share the rest.
The joint-venture firm handed over a cheque worth $738.2 million to the government at a ceremony held at the Diplomat Radisson SAS Hotel yesterday. Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance, received the cheque on the government's behalf from Ranal Spears, Chairman, HPC.
The joint venture firm is investing $500 million in the plant to expand the existing 30 Million Imperial Gallons per Day (MIGD) water desalination plant to a 60 MIGD facility.
"The first phase of the expansion, which will increase the capacity of the existing facility by 12 MIGD, will be ready by April 2007," Hadfield said. "The final phase will be ready by November 2007," he added.
According to a Press statement issued by International Power in January 2006, the engineering, procurement and construction contract for the 60 MIGD desalination expansion has been awarded to SIDEM. The fuel for the plant, according to the statement, will be provided by the Bahrain Petroleum Company (BAPCO) under a separate 20-year Natural Gas Supply Agreement.
In April, a $1 billion project financing deal was announced between HPC and the Japan Bank for International Cooperation (JBIC). The loan agreement is co-financed with six financial institutions including Gulf International Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation.
Hadfield said that the commercial contract of HPC starts only from November 2007.
Hidd Power and Water Station is the second power plant to be privatised in the Kingdom. The Al Ezzel Power plant was sold to a joint-venture company in 2004.
© Bahrain Tribune 2006
