GDF Suez preferred bidder for Az Zour project
Kuwait, March 6, 2012
A consortium led by GDF Suez, a leading power generation company, has received preferred bidder notification from Kuwait’s Partnerships Technical Bureau (PTB) for the construction and operation of a major water and power project.
The consortium, which includes International Power (owned 70 per cent by GDF Suez), will construct a gas-fired combined cycle power plant of at least 1,500MW and an associated water desalination plant with a capacity of 102 to 107 MIGD (464 to 486 thousand cu m/day) for the Az Zour North Independent Water & Power Project (IWPP).
All of the plant’s output will be purchased by the Kuwait Ministry of Electricity and Water under a 40-year long-term Energy Conversion and Water Purchase Agreement (ECWPA). The plant is expected to start commercial operation in 2015.
The project is expected to be owned 10 per cent by Kuwaiti public entities, 50 per cent by Kuwaiti nationals (via an Initial Public Offering) and 40 per cent by the consortium, which is made up of International Power (17.5 per cent), Sumitomo (17.5 per cent) and A H Al Sagar & Brothers (5 per cent).
The total project cost will be funded by a mix of project finance debt and equity in an approximate 80:20 ratio.
In addition, International Power and Sumitomo anticipate establishing (on a 50:50 basis) the operation & maintenance (O&M) company for the Az Zour plant. The EPC contractors will be Hyundai Heavy Industries and SIDEM. – TradeArabia News Service