TAQA consortium is lowest bidder for Dubai power first

Abu Dhabi firm among group in best bid for $1.3bn Hassyan independent power project
TAQA consortium is lowest bidder for Dubai power first
TAQA is in the consortium which has submitted the lowest bid for Dubais first private power plant.
By Reuters
Mon 12 Dec 2011 06:25 PM

A consortium of Abu Dhabi National Energy Company, Japan's Marubeni and South Korea's SK E&S Co Ltd is the lowest bidder for the estimated $1.3bn Hassyan 1 independent power project (IPP), the first of six planned IPPs in Dubai, a Taqa spokesman said on Monday.

"The bidding took place on Monday and negotiations will start next week," the spokesman said.

TAQA (40 percent), Marubeni (40 percent) and SK E&S (20 percent) will together own 49 percent of the project company while Dubai Electricity & Water Authority (DEWA) will own the remaining 51 percent, he said.

Switzerland's Alstom and Samsung Engineering Co Ltd are the engineering, procurement and consruction (EPC) partners of the consortium.

The Hassyan 1 is a Greenfield combined cycle gas turbine power plant with a capacity of 1600 MW (megawatts).

It will be developed on a build-own-operate (BOO) basis and the electricity will be sold via a 25-year power purchase agreement to DEWA, the state-owned utility.

Located 60 kilometres south-west of Dubai in the United Arab Emirates, Hassyan 1 is the first of six planned IPPs in Dubai that will form a power and water complex with total capacity of 9000 MW of power generation and 720 million gallons per day (MIGD) of desalinated water.

State-owned TAQA is the sixth-largest global independent power producer in the world with gross power generation capacity of 16,402 MW. Its power plants are in the UAE, Oman, Saudi Arabia, India, Morocco and Ghana.

Despite sluggish economic growth, peak power demand is rising in Dubai.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.