NEWS/ Middle East Update

Best bid revealed for Fujairah project

International Power submitted the most competitive bid for a contract to build and run a $3bn independent water and power plant (IWPP) in UAE sheikdom of Fujairah.

State-owned Abu Dhabi Water & Electricity Authority said that International Power, which bid in partnership with Murubeni Corp, offered to produce electricity from the Fujairah F2 plant at a cost of Dh0.108 ($0.03) per kWh and desalinated water for Dh13.4 per 1000 imperial gallons (4540 litres) for the project. The next best offer was from Suez, which proposed to produce electricity at Dh01.05 per kWh and water at Dh15.4 per 1000 imperial gallons.

The 2000 MW Fujairah IWPP will also produce 130 MIGD, or 590 m litres a day of water. The new plant is scheduled to commence operations in 2010.

Doosan celebrates $510m equipment order from DEWA

Doosan Heavy Industries & Construction, South Korea’s biggest maker of power equipment, has won a Dh1.876bn ($511m) order from Dubai Electricity and Water Authority (DEWA) to provide equipment for a power plant being built in the UAE.

Doosan, which won a $1.14bn DEWA contract for the construction of the Jebel Ali ‘M’ combined-cycle power plant in March of this year, said that the plant would be finished by December 2010.

The Korean giant plans to complete the EPC (engineering, procurement and construction) project, involving the design, manufacture, installation and testing of all the power systems by March 2010.

DEWA has commenced the execution of Phase III of Aweer power station (Station H). The project is costed at Dh1.64bn and its completion is scheduled for mid-April 2008. The production capacity of Aweer power station, after the completion of H Station will be 1800 MW.

Iran plans two extra nuclear plants

Iran has announced that it is accepting bids for a contract to build two nuclear power plants in the southern city of Bushehr.

Ahmad Fayaz Bakhsh, the country’s chief of nuclear energy production, said the plants are planned to have a capacity between 1000 MW and 1600 MW. Bakhsh said the plants are meant to supplement Iran’s first nuclear power plant, which is still under construction by a Russian contractor. The plant’s completion has been repeatedly delayed.

He said bidding for the construction would end on 8 August , which is expected to take between nine and 11 years. Bakhsh said the new plants would cost between $1.4bn and $1.7bn to build. The announcement followed statements from the country’s government that its uranium enrichment programme has reached an “industrial phase”.

Iran and Dubai ink memorandum for electricity network link

Iran and Dubai have signed a memorandum of understanding (MoU) to cooperate in linking their respective electricity networks through underwater cables.

The MoU, which will be implemented in 2008, envisages a study on transferring electricity with a voltage of 400 kV. Regarding the 180 km distance between Iran and Dubai, the two sides will determine the exact underwater cables, voltage, the amount of transferable energy and the cost of implementing the project.

The transferable power in the project is anticipated to be more than 1000 MW.

Abu Dhabi proclaims ambition to build the world’s greenest city

Abu Dhabi is aiming to build the first city in the world that will add no carbon pollution to the atmosphere, and generate no waste.

The six km2 integrated energy science and technology community, which is due to open by the end of 2009, will be located in the heart of the UAE capital.

It is being developed by the Masdar Institute of Science and Technology, a joint venture between the Abu Dhabi government and the Massachusetts Institute of Technology.

As well as housing the Masdar Institute and housing for all its employees, the green city will also host a science museum and offer commercial space for other local and international companies that are working on the development of advanced energy and conservation technology.

OCI signs $135m deal for Egypt’s El Tebbin thermal plant

Orascom Construction Industries (OCI) announced that it has signed an EGP760m ($135.5m) contract with Egypt for the construction work on a new 2 x 350 MW thermal power plant located in El Tebbin, 25 km south of Cairo.

The scope of work under the contract includes all civil works, including the plant’s intake pump house and discharge structures, reinforced concrete cylinder pipes, which are 2.5 m in diameter, a 150-m high chimney, steam turbine buildings, all auxiliary and ancillary facilities, all underground facilities, piping and duct banks, as well as all associated piling, foundation, mechanical and electrical works.

OCI will work for the Cairo Electricity Production Company (CEPC), an affiliate of the Egyptian Ministry of Electricity. The plant is also located near the industrial areas of Helwan and Maadi in greater Cairo.

Oman unveils plans for major power and desalination facility

The Oman Power & Water Procurement Company (PWP) has unveiled plans for the development of a 700 MW independent power and water project.

A 700 MW capacity natural gas based power generation plant, alongside a desalination facility of around 130 000 m3 per day capacity is envisaged. The project will be established at a suitable location in the northern Batinah region, where the demand growth for power and water is the fastest in the country; Sohar and Barka are tipped as the most likely location candidates for the facility.

PWP, a wholly owned subsidiary of the stated-owned Electricity Holding Company, will be the sole purchaser of the entire output of power and water.

The successful bidder will win a 15-year concession to design, develop, finance and construct the project on a ‘build, own, operate’ basis. The project is scheduled to come on stream in 2011.

Dubai invites bids for leading power and water project

To help meet Dubai’s soaring energy demand the state utility has invited bids for initial contracts to build what is said to be the world’s largest power and water plant at a cost of about $4bn.

International engineering companies have until 10 June to bid for the first contracts to advise on the construction of the Hassyan power and seawater desalination plant, said an unamed Dubai government official.

The project, also known as Station P, will be developed in two phases, with a combined capacity of 3000 MW and 200 MIGD of desalinated water.

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