A massive BD756 million ($2 billion) new power and water plant being built to meet Bahrain's surging demand will start commercial production of electricity in the next two months, a top official said.

'The 1,234 mw Al Dur Independent Water and Power Project, located on Bahrain's South Eastern coast, which is set to be fully commissioned in June next year, will begin commercially producing 400 mw by the end of June,' said EWA distribution and customer services deputy chief executive Adnan Fakhroo.

Speaking while opening the Gulf Water and Power Forum at the Bahrain International Exhibition and Convention Centre, he said the plant's water output will be around 48 million gallons and that would also go into full production by next year.

'The backbone transmission system is also being expanded equally with the introduction of 10 new 220 kilowatt sub stations and 29 new 66 KV sub stations in the next two years,' he said.

The three-day event is organised by BME Global Limited on behalf of the GCC Chambers of Commerce, under the patronage of Works Minister and Minister in Charge of the EWA, Fahmi Al Jowder.

'Power generation plans in Bahrain are proceeding according to plans,' he said. 'Several new initiatives are being taken to improve not only power generation but also power transmission.'

He said steps have also been taken on the 400 KV transmission network developments.

'We have recently received bids for the appointment of a consultant and it is under the stage of evaluation for finalising the award.' Fakhroo said the project is on fast track and will be completed by the end of 2012.'

Machinery and equipment installation work started early last year at the Al Dur plant. GE Energy secured more than $500m in contracts to supply advanced power generation equipment and long-term services for the project, the largest plant in the country.

The Atlanta, US-based giant supplied two steam and four heavy-duty gas turbines and will service them for 20 years. A contract to build the plant was earlier awarded in 2008 to Gaz De France Suez Energy International and Gulf Investment Corporation. – TradeArabia News Service