ABU DHABI — Singapore’s Sembcorp Utilities has emerged as top bidder for the privatisation of Fujairah-based power plant run by Abu Dhabi Water and Electricity Authority (ADWEA) yesterday by maker a bid of $1.3438 billion.
ADWEA received four bids for the power plant, which has the electricity generation capacity of 650 megawatt and seawater desalination capacity of 100 million imperial gallons per day (MIGD). The new owner will also add 200mw of new power generation capacity.
A total of four bidders participated in the bidding process of the Independent Water and Power Plant (IWPP), which is the sixth in line. Earlier, ADWEA privatised its five power projects in the emirate.
A consortium led by French energy company, Suez Energy International offered $1.338 billion, another consortium led by Japanese giant Mauribeni Corporation supported by JGC also from same country offered $1.127 billion, while the fourth group led by International Power of United Kingdom offered a price of $1.250 billion. Two Japanese companies Mitsui and Yondon were other partners in the bid.
In the next phase, the proposals offered by the bidders would be evaluated.
Abdulla Saif Al Nuaimi, director privatisation ADWEA, speaking on the occasion said that Abu Dhabi will offer more opportunities in the medium term, as new power and water capacity is added in line with the sector vision of private sector participation.
Mr Nuaimi said that PWPA for the Fujairah project with the successful bidder would be signed by the end of February 2006 in accordance with our implementation schedule. Closing of the PWPA is scheduled for mid May and the successful bidder will achieve financial close by the end of July 2006.