15 December 2004 - The privatisation of Abu Dhabi's power transmission and distribution sector will be finalised by the first quarter of 2005, according to a top official.
"Private placements in Abu Dhabi Distribution Co and Al Ain Distribution Co are under consideration. A final decision will be taken by the first quarter of next year," said Abdullah Saif Al Nuaimi, director of privatisation for the Abu Dhabi Water and Electricity Authority (Adwea). "We are looking at allowing only minority stakes in these two companies, without any public offering of shares," he said during a conference organised by Adwea.
Privatisation of power generation is expected to gather pace, as more plants will be developed through foreign participation. Adwea is awaiting the report of BNP Paribas, an adviser on private placement.
Al Nuaimi said the signing of Oman's Sohar Aluminium smelter is expected to take place in the first quarter of 2005. "There is no date fixed, but the signing may take place next year, within three or four months." Adwea is taking 40 per cent equity in the smelter, which will have a power plant. The planned smelter will have a capacity of 500 000 tonnes per year, and a 1100 MW power plant.
Al Nuaimi said no final decision has been taken on Abu Dhabi's fifth independent power project, the Taweelah B. "Negotiations are still going on with the top bidders. We will very soon announce our decision," he said. A consortium led by Japan's Marubeni Corporation is the frontrunner to win the Taweelah B contract.
Adwea is committed to privatising more power plants in the capital, he said, without giving further details.