Sojitz quits Abu Dhabi power project
Japanese trading house pulls out of power and water plant over price.
Sojitz is said to have pulled out of a venture bidding to build and operate a $1.6 bn power and water project in Abu Dhabi following a disagreement over tariffs.
The Japanese trading house and partner GDF Suez were in final talks on the project after making the lowest bid.
But Sojitz decided not to proceed when talks over power and water rates fell through, senior managing executive officer Yoshio Mogi told the Bloomberg news agency.
Abu Dhabi Water and Electricity Authority (Adwea) received bids from six groups for the Al Mirfa project in March last year though the companies were not identified.
Last month ADWEA received clearance to proceed to close of the independent power project. It will hold a 60% controlling stake with French energy giant GDF Suez holding 40%.
Sojitz was said to be among a number of Japanese companies that bid for the plant which will produce 1,600 MW of electricity and 52.5 MIGD of desalinated water.
Mitsubishi Corp, Marubeni, Itochu and Sumitomo also threw their hat into the ring.
Under the deal the developer would hold a 40% stake in Al Mirfa with ADWEA holding a controlling 60% stake.