French utility company, GDF-Suez, has signed a 25-year Power and Water Purchase Agreement (PWPA), for the Mirfa Independent Water and Power project, with the Abu Dhabi Water and Electricity Company (ADWEA).
The $1.5 billion Mirfa project will be located 110km from Abu Dhabi and will be the emirate’s 10th facility to be built under the public-private partnership model.
The project will involve the acquisition of certain existing water and power facilities; the development, design, engineering and construction of new power and water facilities; as well as the operation of the plant.
“This new project will allow us to pursue our growth strategy in the region and to meet the increasing demand for both electricity and water in the United Arab Emirates,” said Gerard Mestrallet, chairman and CEO of GDF SUEZ.
GDF Suez has selected a turnkey EPC contractor consortium comprising of Hyundai Engineering & Construction and Hyundai Engineering from Korea, in addition to Ansaldo Energia Spa from Italy.
The French utility company holds a 20 per cent equity interest in the project with the remaining 80 per cent being held by ADWEA. A mix of debt and equity will fund the project.
Malcolm Clampin is appointed as the first Executive Managing Director of the project.