GDF SUEZ signs PPA for $1.5bn Mirfa IWPP
French giant pens 25-year deal with Adwec for Abu Dhabi project.
GDF SUEZ has signed the Power and Water Purchase Agreement (PWPA) for its sixth Independent Water and Power project (IWPP) in Abu Dhabi.
The French company penned the 25-year deal for the Mirfa project with the Abu Dhabi Water and Electricity Company (ADWEC).
GDF SUEZ holds a 20% equity interest in the project with the remaining 80% held by ADWEA (Abu Dhabi Water and Electricity Authority).
Located 120 km from Abu Dhabi, the Mirfa project is the Emirate’s tenth facility to be built under the Public-Private Partnership model.
The project 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.
When finished, and with the existing and new facilities fully integrated, Mirfa IWPP will have a total power capacity of 1,600 MW and a seawater desalination capacity of 52.5 MIGD.
Gerard Mestrallet, chairman and CEO of GDF SUEZ, said: “We are pleased to successfully formalise the framework for our exclusive partnership with ADWEA for the Mirfa project, our sixth development in the United Arab Emirates.
“This new project will allow us to pursue our growth strategy in the region and to meet the increasing demand for both electricity and water in the United Arab Emirates.”
GDF SUEZ has selected a turnkey EPC contractor consortium comprising Hyundai Engineering & Construction Co. Ltd and Hyundai Engineering Co. from Korea and Ansaldo Energia 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.
Commercial operation of the project is expected on a phased basis between 2016 and 2017. 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 $1.5 bn funded by a mix of debt and equity.
The debt requirement for the project shall be met through funding from a combination of local and international banks, with commitments currently oversubscribed.