A joint venture has signed a 20 year power and water purchase agreement with the Abu Dhabi Water and Electricity Authority (ADWEA) for the $1.6 billion Shuweihat S1 power and desalination project. The partners, CMS Energy Corp and International Power Plc, won the project through a competitive tendering process.
The project includes a gas-fired 1500 MW combined cycle power plant and a water desalination facility with a capacity of 455 000 litres/d of water. The plant will be constructed on a site close to Jebel Dhana, 250 km west of the city of Abu Dhabi. ADWEA will hold a 60 per cent stake in the project while the two joint venture partners hold the remaining 40 per cent. The partners will also operate and maintain the plant under a 20 year contract.
Construction at the site is due to begin in Spring 2002, with commercial operation scheduled for the summer of 2004. An engineering, procurement and construction contact has been awarded to a consortium of Siemens and Fisia Italimpianti. Financing is being arranged by Barclays Capital, Citibank, N A, Abu Dhabi Investment Co, Bank of Tokyo Mitsubishi, Kreditanstalt fur Wiederaufbau, National Bank of Abu Dhabi and the Royal Bank of Scotland. Financial closure is expected in November.
