ADPC awards KPIZ utilities contract to Hyundai
Korean firm to install 15 substations as part of $326.7m package
The Abu Dhabi Ports Company has awarded Hyundai with a US$326.7 million contract for construction work at the Khalifa Port Industrial Zone, the sprawling industrial area in and around the emerging Khalifa Port in Taweelah. The Korean company is responsible for the entire utilities infrastructure at an offshore section of the complex, which includes 15 substations.
Hyundai will oversee the project management, design, procurement, construction, testing and commissioning of the infrastructure. Apart from the substations, Hyundai will also install the remaining electrical distribution infrastructure and the water transmission systems for potable water and sewage. Work will begin immediately and is due to be completed in 2012.
The KPIZ project includes the new port and a 51 square kilometers area adjacent of the port complex.
The ADPC has committed a total of 26.5 billion dirhams to the initial Phase A of the project, which encompasses the construction of the first phase of the harbour, and Area A, the first part of the industrial zone.
Of this, around 13 billion dirhams will be spent on the construction of the port, located on an island 4.5 kilometers from the mainland. Phase A is scheduled for completion by September 2012.
The requirements for the power distribution network in the industrial zone has not been decided and will be determined by the degree to which the zone will be occupied by industry.
The ADPC has signed a Memorandum of Understanding (MoU) with utilities providers, stipulating that once Phase A has been completed, the company will sell off the infrastructure to the providers. It will be left to them to operate the systems, and to sign agreements with the tenant customers.
The proceeds from the sales will be used to reimburse the Abu Dhabi government for its initial outlay.
Whereas the power, water and wastewater distribution and transmission systems will be bought by the relevant providers, such as Abu Dhabi Water and Electricity Authority (Adwea) subsidiary Transco, or the Abu Dhabi Sewage Company, no operator has been found for the seawater cooling system.
The seawater cooling system is already operational, supplying the aluminum smelter owned Emirates Aluminum (Emal), the first industrial complex in operation. The system currently supplies 60.000 cubic meters of water to the smelter.
The initial development of the harbour and the industrial zone is part of a much more ambitious vision that could see the KPIZ mushroom to a total size of 420 square kilometer, and harbour capacity expand from two million to 15 million TEU by 2030.