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Dubai: A consortium between GDF Suez and Gulf Investment Corporation (GIC) yesterday said it has signed agreements for the development of a Dh7.3 billion ($2 billion) Al Dur Independent Water and Power Producer (IWPP) with the Bahrain government.
The complex will have a capacity of 1,234 megawatts of power and 218,200 cubic metres per day (48 million imperial gallons per day) of water.
"The project, to be developed on a BOO (build, own, operate) basis, will be located at Al Dur, on the southeastern coast of Bahrain and will substantially increase power and water supplies in the kingdom," said a statement.
The Ministry of Finance awarded the IWPP to GDF Suez and GIC consortium following an international competitive tendering process. The project is the third IWPP being developed in the kingdom of Bahrain.
The project will deliver electricity and water to the Electricity and Water Authority (EWA) under a 20-year Power and Water Purchase Agreement (PWPA) commencing on 1 June 2011.
The first phase of the project will start in the summer of 2010, with full capacity being achieved in summer 2011.
The project consists of a Combined Cycle Gas Turbine power plant and a Reverse Osmosis (RO) technology desalination plant together with all support facilities such as seawater intake and discharge structures and gas connection facilities.
The consortium has selected Hyundai Heavy Industries (HHI) as the engineering, procurement and construction (EPC) contractor of the project. General Electric will supply the power plant turbines and Degremont will supply and install the RO desalination facility.
The project is expected to cost over $2 billion, which will be funded by a mix of equity capital and project finance through a consortium of regional and international banks.
Dirk Beeuwsaert, GDF Suez Energy International's chief executive, said: "The fact that GDF Suez is involved in each of the three IWPP projects in Bahrain demonstrates the company's commitment to investing in the Kingdom of Bahrain.
"The Middle-East needs to build substantial additional power and water capacity and we have proven to be a reliable and competent partner to do so."
Hesham Al Razzuqi, CEO of GIC stated: "GIC is a co-developer of five power and water projects in the GCC with a total asset base of approximately $9 billion."
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