Marubeni-led consortium wins US $3 billion power deal
Sheikh Khalifa has also issued decrees forming two new utility companies
Japanese Marubeni Corporation says that the group it leads has won a US $3 billion power generation and desalination project in Abu Dhabi. The consortium will build a 1 million kV thermal power plant and a unit that can produce 300 000 tonnes of water daily in the Taweelah complex by July 2008.
Under a 20-year contract with Abu Dhabi Water and Electricity Authority (ADWEA), the consortium will also buy an existing Taweelah 1 million kV thermal power plant and a plant that produces 450 000 tonnes of water daily. A joint venture will be set up to run the facilities starting April, with the consortium taking a 40% stake and ADWEA the remaining 60%.
Marubeni formed a consortium with Japanese engineering firm JGC Corp., BTU Power Co. of the US and Malaysian power producer PowerTeck Bhd, to compete for the deal.
The Japanese giant has been doing rather well in the region over the past year. In November, its consortium with South Korea’s largest rolling stock manufacturer, Rotem Company (Hyundai Motor Group), won an order worth about Euro 110 million for 120 diesel multiple unit cars from Iran’s Irankhodro Rail Industries Company.
The project will be funded using export credit from the Export-Import Bank of (South) Korea. The production is scheduled to start in 2006, and delivery will be made from the beginning of 2007 through to 2008.
In March, Marubeni formed a consortium with Czech company, Skoda Dopravni Technika and won an order from Rail Transportation Industries Development Company (affiliated with Industrial Development and Renovation Organisation of Iran) for the delivery of 100 low-floor trams (total contract amount about Euro 120 million).
Separately, UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued, in his capacity as Ruler of Abu Dhabi, two Emiri decrees.
A decree has been issued forming a company named Al Taweelah United Power, which will be set up as a public joint stock venture with a capital of AED 2.3 billion to be divided into 130 million shares with each share having a nominal value of AED 10. The decree stipulated that all nominal shares will be wholly owned by ADWEA.
“ADWEA’s board shall name the chairman and members of the board of the new company. It shall also name a committee to take suitable measures in coordination with other official bodies as per the State working laws,’’ the decree read.
The other decree called for establishing the Taweelah Asia Power Company as an industrial private joint stock firm to develop, own, operate and maintain projects for power generation and desalination.
The decree fixed the capital of the company at AED 994 million to be divided into 99 400 000 shares with each one priced at AED 10. “The Taweelah Power Company shall own 60% of the company while Asia-Gulf Power Holding Company shall hold the remaining stake,” the decree stated.
The decree stipulated that the company should chalk out an effective plan to recruit and train nationals technically and administratively to run the company. The decrees will go into force from the date of their issue on 8th December 2004.