GDF Suez wins Bahrain power plant contract

GDF Suez yesterday said it won a contract to build, own and operate the $2 billion (Dh7.3bn) natural gas-fired Al Dur 1 power generation and seawater desalination plant in Bahrain, which will deliver 1,234MW of electricity and 218,000 cubic metres of water per day.

The project is scheduled for completion in 2011.

GDF Suez Energy International and Gulf Investment Corporation (GIC) each hold 50 per cent in the consortium that won the bid. The Al Dur plant will be located in the south of Bahrain, about 40km from Al Ezzel, another power generation plant in which GDF Suez has a 45 per cent stake.

Bahrain's Ministry of Finance awarded the project to the GDF Suez-GIC consortium following an international competitive tendering process. The project is the third independent water and power project (IWPP) being developed in the Kingdom.

It will deliver electricity and water to the Electricity and Water Authority (EWA) under a 20-year power and water purchase agreement (PWPA) that starts on June 1, 2011.

The first phase will start in the summer of 2010, with full capacity being achieved in summer 2011.

The project consists of a Combined Cycle Gas Turbine power plant and a Reverse Osmosis (RO) technology desalination plant together with all support facilities such as seawater intake and discharge structures and gas connection facilities.

The consortium has selected Hyundai Heavy Industries as the EPC contractor of the project.

General Electric will supply the power plant turbines and Degremont will supply and install the RO desalination facility.

The $2bn cost will be funded by a mix of equity capital and project finance through a consortium of regional and international banks.

"The fact that GDF Suez is involved in each of the three IWPP projects demonstrates the company's commitment to investing in the Kingdom," said Dirk Beeuwsaert, GDF Suez Energy International's Chief Executive.