Al Taweelah contract for CMS

CMS Energy has won the contract for the privatization, construction and operation of the $700m Al Taweelah A2 power plant and desalination project in the United Arab Emirates.

The plant, to be built on the coast of the Arabian Gulf some 40 km northeast of Abu Dhabi, will consist of a 710 MW gas fired combined cycle plant and water desalination facility capable of producing 50m gallons of drinking water per day.

CMS will have a 40 per cent stake in the plant, while Abu Dhabi Water and Electricity Authority will hold the remainder. Under the contract CMS will manage the financing and construction of the plant. Financing will be led by Barclays Bank.

CMS Energy`s independent power unit, CMS Generation, was selected by ADWEA from eight shortlisted bidders to negotiate definitive contracts including the power and water purchase agreement. Financial closure is expected before the end of the year, after which construction will begin.

The first gas turbine is scheduled for operation by May 2000, with full commercial operation by August 2001. Power from the plant will be sold to ADWEA under a 20-year contract.