Sembcorp sign up for Fujairah

7 July 2006 - The Abu Dhabi Water and Electricity Authority (Adwea) and Singapore's Sembcorp have signed an agreement to develop the Dhs6.4bn ($1.74bn) Fujairah power and water project.

The agreement was signed by Adwea Chairman Sheikh Dhiyab Bin Zayed Al Nahyan and Sembcorp Chairman, President and CEO Tang Kin Fei.

Under the terms of the agreement, SembCorp will acquire 40 per cent stake in the project while Adwea will retain the remaining 60 per cent stake. The project involves expanding the existing 625 MW power generation plant and the water
desalination unit with a production capacity of 100 million gallon per day in Fujairah.

The project will add 225 MW capacity to the existing power plant. Commercial operations are scheduled to begin in 2008.

The electricity and water output from the facility will be sold to the Abu Dhabi Water and Electricity Company (ADWEC) under a 22-year Power and Water Purchase Agreement (PWPA). The plant will be operated and maintained by SembCorp Gulf O&M Co Ltd, a wholly owned subsidiary of SembUtilities, under a long-term operation and maintenance contract for the entire term of the PWPA.

Tang Kin Fei, Group President & CEO of SembCorp, said: "We are pleased to have been selected by ADWEA to be its partner in the Fujairah IWPP. This success is recognition of our strong operating track record and reflects our ability to capitalize on our technical expertise in managing power and water facilities. Our partner ADWEA has an established track record in power and water projects and we look forward to working closely with them on this project."

SembUtilities' participation in the project follows a competitive bidding process that began in July 2005 and which involved other global utilities players companies.

Tang added further: "This acquisition is a major milestone for SembCorp. It is our first power and water investment in the Middle East as well as our largest utilities investment overseas to-date. The project is in line with our strategy to focus on businesses that provide stable and recurring income. It also gains us entry into the booming economies in the UAE and enables us to start a base from which to grow our integrated utilities business in Abu Dhabi and the Gulf region."

Sponsored by FLSmidth

Related Articles

Video: Duke Energy acquires Halifax Solar Project in North Carolina

Duke Energy Renewables (NYSE: DUK) has acquired a 20-MW solar project in Roanoke Rapids, North Carolina, from Geenex and ET Solar Energy Corp.

Tucson Electric acquires stake in Gila gas power plant

Tucson Electric Power (TEP) has acquired a portion of the output generated by the Gila River Power Station, a natural gas facility.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Buyers Guide Categories

Power Industry Wire News

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Composition

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Co...

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

MDU Places Dakota Natural Gas Pipeline on Hold, an Industrial Info News Alert

MDU Places Dakota Natural Gas Pipeline on Hold, an Industrial Info News Alert

Top Industrial Market News Stories for the Third Week of December 2014, an Industrial Info News Alert

Top Industrial Market News Stories for the Third Week of December 2014, an Industrial I...

American Leisure Holdings, Inc. Reports on Wholly Owned Subsidiary Financials

American Leisure Holdings, Inc. Reports on Wholly Owned Subsidiary Financials

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>