Companies bidding for the contract to build a water desalination and power plant in Bahrain are in talks with banks to secure financial backing for the project, a banking source said on Wednesday.
Bahrain's Ministry of Finance has issued a request for proposals to build the Addur independent water and power plant (IWPP), which will have a generation capacity of between 1,100 MW and 1,250 MW and will process 48 million imperial gallons per day of desalinated water.
Although not yet finalised, the financing is expected to include a syndicated commercial bank loan worth around $1 billion (Dh3.67bn), though total project costs could be in excess of $2 billion.
BNP Paribas is acting as financial adviser to the Ministry of Finance on the project, which is due to start commercial operation in 2011. (Reuters)
Firms in loan talks for Bahrain power plant