Partners conclude purchase agreement for Fujairah 2 project


  • Share via facebook
  • Tweet this
  • Bookmark and Share

Project partners for Fujairah 2 have signed a 20-year power and water purchase agreement (PWPA) with the Abu Dhabi Water and Electricity Company (ADWEC) for the plant's entire output.

International Power, Marubeni Corporation and the Abu Dhabi Water and Electricity Authority (ADWEA) will own the project company, to be known as the Fujairah Asia Power Company.

International Power has a 20% equity interest, with 60% held by ADWEA and 20% by Marubeni. The facility will be operated by a 50:50 joint venture between International Power and Marubeni.

The total project cost is estimated to be US $2.8 billion, which will be funded by a mix of debt and equity in an 80:20 ratio. For its 20% share, International Power's equity investment will be US $112 million.

Philip Cox, chief executive of International Power, said, "We are very pleased to have signed this agreement, as the Fujairah 2 project builds on our growing portfolio in the Middle East, where we have significant greenfield development and operational experience."

The Fujairah 2 independent water and power project (IWPP) is itself a greenfield development project and will produce 2 000 MW of power and 130million imperial gallons per day (MIGD) of water, using mostly multi-effect distillation, upon its completion.

Fuel will be provided by ADWEC in the form of natural gas on a pass-through basis under the PWPA. The project is expected to be fully operational by the end of 2010, while financial close is expected by 31 December 2007.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Most Discussed
  • 14
    Baby NOT on board?

    The people commenting here were all 20 years old when they were born, never cried, never screamed and never ran etc etc.
    more

    Thursday, 21 August 2014 8:30 AM - Amer
  • 5
    CEO of Just Falafel to step down

    Every word mentioned above by Omar is 100% true. I have been closely watching and analyzing JF and I am wondering at their strategy, speed of growth and... more

    Wednesday, 20 August 2014 8:24 PM - Ivar
  • 3
    Belgium diplomat arrested for pulling veil from Qatari princess

    Exactly right RAH.

    And if you do not like the rules in those countries, do not visit.

    Simple! more

    Thursday, 21 August 2014 1:11 PM - who2