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Dubai Electricity and Water Authority (DEWA) shortlisted 18 developers to participate in the 1500 MW Hassyan I Independent Power Project (IPP).
This announcement follows the Expression of Interest (EOI) for the project published in March 2011.
The project, Hassyan I power and seawater desalination plant, will be the first facility to be developed as an independent water and power project. The aim is to meet the growing power and water demands in the emirate.
The offers are expected to be submitted in October 2011 and the PPA with the successful bidder is expected to be signed by the end of 2011.
The selection of the developers was based on the Statements of Qualification (SOQ) received from 20 developers in response to the Request for Qualification (RFQ) issued by DEWA and its advisor last month to 27 Developers who showed their interest in the project.
“The request for proposal (RFP) will cover General Instructions to the bidder, minimum functional specification, shareholder agreement, power purchase agreement as well as DEWA IWPP Code,” Saeed Mohammad Al Tayer, Managing Director and Chief Executive Officer of DEWA said.
“The successful Bidder will ultimately own 49 per cent of a special purpose company which will be formed to own the Hassyan I Project. The balance of 51 per cent will be owned directly or indirectly by DEWA. The Special Purpose Company (“SPC”) will be incorporated under the applicable laws of the UAE,” Al Tayer added.
The project will have the capacity to generate 1,500 MW of power and also produce 120 million imperial gallons a day of desalinated water. The project, which is expected to be commissioned in 2014, will be built near Abu Dhabi and use natural gas for fuel.
This deal comes at a time when Dubai is creating and developing areas of investment to encourage the private sector’s engagement in strategic projects and to establish a business model which depends on the competitiveness and latest available technologies designed to provide the future energy needs of Dubai.