GDF, ADWEA reach financial close on Mirfa IWPP

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
GDF, ADWEA reach financial close on Mirfa IWPP

GDF Suez and the Abu Dhabi Water and Electricity Company (ADWEC) have reached financial close on the Mirfa Independent Water and Power (IWPP) project.

GDF Suez holds a 20% equity interest in the project with the remaining 80% held by ADWEA. In early June we reported that the two parties had signed a 25-year Power and Water Purchase Agreement (PWPA) for the project.

The Mirfa project, which is the Emirate’s tenth facility to be built under the public private partnership (PPP) model, is located 120 km from Abu Dhabi. Mirfa IWPP will have a total power capacity of 1,600MW and a seawater desalination capacity of 52.5 MIGD (238,665 m3/day). The project is targeted to satisfy Abu Dhabi’s rising demand for electricity and water as well as supporting the development of the UAE’s Northern Emirates.

The project will be built at a capital cost of approximately US$1.5 billion, funded by a mix of debt and equity. It will involve the acquisition of certain existing water and power facilities, the development, design, engineering and construction of new power and water facilities, as well as the operation of the plant.

Commercial operation of the project is expected on a phased basis between 2016 and 2017.

H.E. Faris Obaid Al Dhaheri, ADWEA's director general commented:

The Mirfa project reflects the wise vision of the Government of Abu Dhabi and its continued support for the power and water sector, and it is an important addition to the sector, and once completed, will play a key role in delivering power and water competitively to meet Abu Dhabi's growing electricity and water demand.

GDF Suez has selected a turnkey EPC contractor consortium comprising Hyundai Engineering & Construction Co. Ltd and Hyundai Engineering Co. Ltd. from Korea and Ansaldo Energia SpA from Italy. Degremont, a subsidiary of Suez Environnement, will be responsible for the new seawater Reverse Osmosis (RO) facility as a subcontractor to the EPC contractor.

Lucas Hautvast, CEO and president of GDF Suez Energy South Asia, Middle East & Africa, added:

GDF Suez entered the UAE in 2000 and Mirfa is our sixth major development in the country. We take pride in being considered a partner for ADWEA and we remain committed to delivering the electricity and water that the emirate of Abu Dhabi needs to sustain its economic growth.

GDF Suez has five power and water plants in operation in the UAE: Al Taweelah A1, Shuweihat S1, Umm Al Nar, Fujairah F2 and Shuweihat S2. Together these assets contribute 8.8 GW of power and 557 MIGD (2,500,000 m3/day) of desalinated water. Once the Mirfa project is completed, GDF Suez will operate 10.4 GW (gross) power capacity and 609.5 MIGD (gross) (2,770,000 m3/day) water capacity.

Share this news