Project / Tender - Complete Information

Expression of Interest (EOI). This project will be located on the Arabian Gulf Coast at a fully prepared site in Hassyan, approximately 50 kilometres from the city of Dubai, adjacent to the border with the Emirate of Abu Dhabi. Client has formally announced the commencement of a competitive process to select a developer or developer consortium to own 49% of a Special Purpose Company (SPC), to be incorporated under the laws of the United Arab Emirates (UAE), in order to participate in this tender. The remaining equity will be held directly or indirectly by the client. EOIs are to be submitted on March 30, 2011. SPC will enter into a long-term power purchase agreement (PPA) with the client as the sole off-taker. The PPA is expected to be structured as an energy conversion agreement (ECA), and the client will assume supply of natural gas for the project. All interested parties, which have experience of undertaking similar projects, are requested to submit an EOI in two originals and electronic mail. The originals should be submitted for the attention of: Mr. Waleed Salman, Vice President - Strategy & Business Development, Dubai Electricity & Water Authority (DEWA) P.O.Box-564, Dubai, UAE. An electronic copy should be sent to: iwpp.sbd@dewa.gov.ae EOI must include the developer name, contact person, address, telephone number, mobile number, fax number and e-mail address. All future communication regarding the Project will be addressed to the contact person. Upon receipt of an original copy of the EOI, a Confidentiality Agreement would be sent for executing to the contact person of the developer, followed by a Request for Qualification (RFQ) to provide additional details regarding the Project and the tender process. 

The developer consortium led by Saudi Arabia’s Acwa Power has reached financial close for the project. The consortium of Acwa Power and China’s Harbin International signed the 25-year power purchase agreement (PPA) with state utility Dubai Electricity & Water Authority (Dewa) on June 07, 2017.
The shareholders in the project are:
- Dewa (51 per cent)
- Acwa Power (27 per cent)
- Harbin International (14.6 per cent)
- Silk Road Fund (Chinese sovereign wealth fund) (7.4 per cent) 

Structural works are currently in progress. 

Client has closed the financing package that will support the construction of this plant. The package is divided between a senior secured loan and secured mezzanine financing. Client has not specified exactly how much of the project's $3.4 billion cost would be covered by the package. Previously, officials had indicated around 80% would be provided by commercial bank loans. The cash is being provided by lenders, including Industrial & Commercial Bank of China, Bank of China, First Gulf Bank and Standard Chartered Bank. 

Construction work has commenced on this scheme. 

Local Arab Center for Engineering Studies (ACES) has been awarded a contract to carry out the Geo-technical investigation for this scheme. The extensive scope of work, awarded by Consolidated Contractors Company (CCC) and Nepti, includes drilling of 135 offshore boreholes with depths of up to 20 meters below seabed, drilling of 425 on-land boreholes with depths up to 35 meters and excavation of trial pits. Additionally, the investigation includes substantial field testing and monitoring, including the installation of piezometers, packer permeability testing, falling head permeability testing, pressure-meter testing, as well as down-hole and surficial electrical resistivity geophysical tests. The tight project schedule, which had an overall duration of 85 days, was completed in mid-September 2016 and required ACES to mobilize a total of 17 rigs and five offshore pontoons. The required resources were provided by ACES UAE, through a joint effort between the Dubai and Abu Dhabi branches. 

The developer consortium led by Saudi Arabia's ACWA Power has reached financial close for this project. It will be funded by debt of $2.5 billion and equity of $650 million. Majority of the debt, about 78%, is being raised from Chinese banks. Industrial & Commercial Bank of China, China Construction Bank, Agriculture Bank of China and Bank of China are all participating in the transaction. The remaining 22% of debt will be provided by UK's Standard Chartered, Saudi Arabia's National Commercial Bank and by two UAE banks, Union National Bank and First Gulf Bank. The debt has been structured as a soft mini-perm, which in the absence of any refinancing post the commercial operate date will reduce the 25-year maturity of the senior debt by 3.5 years. 

Client has announced the launch of main 400kV power transformer, in addition to a number of other projects worth a total cost of $54 million in this scheme. 

Hassyan Energy Company has officially signed the EPC deal with Harbin Electric International and General Electric to develop the first phase of this project. The plant will utilize latest global clean coal technologies, such as the ultra-super-critical technology and the latest environmental standards. 

A new company, known as Hassyan Energy Company, has been established for this project, which is a joint venture between the client (51%) and Saudi/Chinese consortium ACWA Power Harbin Holding. The plant is being built in four phases of 600MW, with each unit to be made operational in March 2020, March 2021, March 2022 and March 2023 respectively. 

Client has signed a 25-year power purchase agreement (PPA) with the consortium of ACWA Power and Harbin Electric. The plant will comprise (4 Nos.) 600MW units. It is understood that France's Alstom, part of US' GE since 2015, will lead the engineering, procurement and construction (EPC) consortium, and will be in charge of overall engineering of the plant. Netherlands-based Louis Dreyfus will build the coal-handling facilities and France's EDF will supply coal for the plant. 

The first piece of steel frame built by Tianjin Electric Power Construction Company for power plant No. 1 boiler steel structure has been lifted on this scheme. 

The consortium comprising China's Harbin Electric and Saudi Arabia's ACWA Power aims to secure a loan of up to $1.4 billion before the end of second quarter of 2016 to finance this development. The companies are in talks about the club loan with Chinese state-owned credit agency Export-Import Bank of China and lenders, including Industrial & Commercial Bank of China, Bank of China, Standard Chartered; Abu Dhabi's First Gulf Bank and Saudi Arabia's Samba Financial Group. 

RWE Power International ME has been awarded a contract to conduct a comprehensive study on the uses of all by-products of this project. RWE will carry out a study on the use of clean coal ash in cement and building materials industries based on local and international standards. 

Client is currently in discussions to double the capacity of this project to 2,400MW. It is unclear whether the second phase of 1,200MW additional capacity will be under the same tariff. It is understood that the same EPC team will build the second phase. Netherlands-based Louis Dreyfus will build the coal-handling facilities and France's EDF will supply coal for the plant. 

It is understood that ACWA Power has announced the signing of a memorandum of understanding (MoU) with China-based Silk Road Fund Company Ltd.. Under the MoU, the two partners will jointly use their best efforts to cooperate on this project. 

The consortium, which is set to build this plant is planing to secure a loan of about $1.4 billion to help finance the project. It is understood that the consortium is working with a Chinese export credit agency and a range of banks to obtain the loan. The banks include Industrial & Commercial Bank of China, Bank of China, Standard Chartered and Abu Dhabi's First Gulf Bank. 

Client has selected a consortium of Saudi Arabia's ACWA Power as preferred bidder for the EPC contract to build the first phase of this project, with capacity of 1,200MW. Other members of the consortium include China's Harbin Electric and France's Alstom. The plant will be built by Harbin Electric and Alstom, while these companies as well as ACWA and US-based NRG Energy will operate it. Construction would commence in early 2016, after commercial, legal and financial issues are finalized. One unit of 600 MW will be operational by March 2020 and another unit of the same size by March 2021. 

Client has revealed that a preferred bidder to build this plant will be announced on October 13, 2015. 

It is understood that bids are still under evaluation for the main contract. An award is expected by the end of July 2015. 

A consortium of Saudi Arabia's Acwa Power and China's Harbin has submitted lowest tariff price of $4.501 cents a kilowatt hour for this scheme. It also submitted an alternative proposal for a 1,800 MW plant with a levelized cost tariff of $4.998 cents a kilowatt hour. Other bidders include South Korea's Kepco with $5.998 cents a kilowatt hour; Malaysia's TNB Tenaga Nasional Berhad at $6.599 cents a kilowatt hour; and Japan's Marubeni at $7.0128 cents a kilowatt hour. Bids will be evaluated and the best bid would be selected based on the criteria developed by the advisory committee that oversees the project. 

Bidding consortiums are putting the finishing touches to submissions for the main contract. It is understood that there are up to four consortiums submitting tariff bids. The consortiums will include Saudi Arabia's Acwa Power, South Korea's Kepco and Japan's Marubeni. 

Client has once again extended the deadline to submit bids for main contract from the previous deadline of March 26, 2015. The extension has been granted to allow bidders more time to work on submissions.
Client Contact: Mr. Abdullah Mohamed (Procurement Manager). 

Client is planning to award contracts by June 2015 on this scheme. A special purpose vehicle will be created, which shall be responsible for the 80% financing. 

Deadline to submit bids for the main contract has been further extended from the previous deadline of January 26, 2015. This extension has been granted to allow bidders more time to work on submissions. 

Client has extended the deadline to submit bids for the EPC contract by two months from the previous deadline of November 26, 2014. Prequalified consortiums now have more time to submit proposals. 

Client has issued an ITB for the EPC contract on this project. Eight international developers have been short-listed, out of 17 qualification documents received, to submit their bids. 

Invitation to Bid (ITB) for the BOO contract is now expected to be issued in August 2014. 

Invitation to Bid (ITB) for the BOO contract is expected to be issued in July 2014. 

It is understood that companies have submitted EOIs on this scheme. Names of companies have not been disclosed. 

Client has extended the deadline to submit the Expression of Interest (EoI) until April 30, 2014. 

International consultancy firm Ernst & Young (EY) has been awarded the master plan contract on this project. EY will prepare the technical, financial and legal aspects, and work on the scheme until its launch date in the market. It is understood that around a dozen companies submitted bids for this contract, including Deloitte Corporate Finance, PriceWaterhouseCoopers Middle East, Booz & Company, Envicon Plant Engineering, Emirates NBD Capital, Latham & Watkins LLP, Kema International B.V and KPMG Lower Gulf. 

Client has announced the commencement of a competitive tender process to select a suitable developer or developer consortium to own 49% of project company to be incorporated in accordance with Dubai and UAE laws to build and operate on an Independent Power Project (IPP) basis. Interested parties having experience of undertaking similar projects are invited to submit an Expression of Interest (EoI) in two hard copies, signed originals and an electronic copy by e-mail to be received by DEWA no later than April 24, 2014. The originals should be submitted for the attention of: Mr. Waleed Salman, Executive Vice President - Strategy & Business Development, Dubai Electricity & Water Authority, with an electronic copy to:
IPPcoal.sbd@dewa.gov.ae and contracts@dewa.gov.ae
The EoI must include company name, brief description of activity, country of company headquarters, primary contact person, address, direct telephone number, mobile number, fax number and e-mail address. Upon receipt of the EoI, DEWA will duly register the interest expressed for further consideration. DEWA intends providing additional information on the subsequent process and procedures in due course, upon receipt of a confidentiality undertaking. 

UK's EY (formerly Ernst & Young) has been awarded the advisory consultancy contract on this project. Tendering and bidding process for the construction contract is expected to be launched by the end of May 2014. Phase 1 is expected to be completed in 2020. Phase 2 is expected to be completed in 2021, marking the completion of this project. 

Eight groups have submitted bids on October 22, 2013 for the advisory services contract on this scheme. Dutch energy consultant Kema International is understood to be the lowest bidder at $1.4 million, followed by Germany's Envicon Plant Engineering at $2.5 million and Dutch financial firm KPMG at $2.7 million. Other bidders include UK's Ernst & Young, PWC, Deloitte; US' Booz & Company and a joint venture of local Emirates NBD Capital and US' Watkins. 

It is understood that only a small number of bidders are expected to express interest in advising this scheme. Banks including UK’s HSBC and BNP Paribas are understood to not be bidding, while other financial firms including Ernst & Young and KPMG are expected to bid for the role. 

Client has invited specialized firms to submit bids by October 08, 2013 for a contract to provide independent power producer (IPP) advisory services on this scheme. 

It is understood that client is planning to build a coal-fired power plant at the same site as deffered independent power project. It commissioned a study to evaluate the use of clean coal to generate electricity in May 2011. The plant will be 1,800MW to 3,000MW in size and is carried out in phases. It will use super critical pulverise coal (SCPC) or integrated gasification combined cycle (IGCC) technology. First power from the project is expected in 2015 or 2016. The scheme is in early stage and tendering processing for the scheme is not yet been determined. 

It is understood that the client has deferred plans to build this power plant, as it was able to boost existing production capacity and improve conservation to meet growing demand. The decision follows a comprehensive review of client's plans to deliver all future demands for power and water in a timely manner, as per the best international standards and practices in this field. 

It is understood that the BOO contract is expected to be awarded and power purchase agreement (PPA) is to be signed in the second quarter of 2012. Project is expected to be completed in the third quarter of 2014. 

Four consortiums have been short-listed for the BOO contract. A consortium led by Japan's Marubeni Corporation, including UAE's Abu Dhabi National Energy (Taqa) and South Korea's SK Engineering & Construction is understood to be the lowest bidder at 19.057 fils (5.19 cents) a kWh. Other consortiums include:
- Germany's Siemens Power Ventures / Qatar Electricity & Water Company (QEWC): 19.134 fils a kWh.
- Saudi Arabia's ACWA Power / Korea Electric Power Corporation (Kepco) / South Korea's Samsung C&T: 20.27 fils a kWh.
- UK's International Power / Japan's Mitsui / South Korea's GS Engineering & Construction: 20.48 fils a kWh.
Evaluation is currently underway. An award is expected within a maximum of 60 days. 

It is understood that the client will award the main contract on this scheme in the second quarter of 2012. Local bank Emirates NBD and UK's HSBC have offered to help finance this IPP, in an offer intended to demonstrate confidence in the project. The pricing is going to be driven by bidders' own pricing. HSBC and Emirates NBD will match pricing from the other banks. 

Client has extended the deadline to submit bids for the main contract from the previous deadline of October 18, 2011 at the request of prospective developers and after having made sure that there won't be any adverse effect on the project. 

The client held a meeting on June 26, 2011 with all 18 developers for the pre-bid conference on this project. Interest in the scheme remains strong with attendees coming from Japan, Korea, South East Asia, India, Europe, USA and the GCC. 

Client is talking with several export credit agencies about financing this scheme. The advisers on the project have already met with Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea (Kexim). It is understood that as long as the project structure is bankable and feasible, with substantial involvement from Japanese companies, JBIC will consider providing them with financial support for the project. Kexim is also understood to be considering helping South Korean companies bidding on this scheme. Client is aiming to sign a power purchase agreement (PPA) with a preferred bidder in January 2012 and reach financial close in the first half of 2012. 

Client has issued request for proposals (RFP) on May 22, 2011. It is understood that the client has pre-qualified (18) developers to bid for a contract to build and operate this IPP. The pre-qualifiers include Saudi Arabia's ACWA Power; Korea Electric Power Company (Kepco), Samsung Engineering; US' GE International; Malaysia's Malakoff International; Japan's Marubeni Corporation, Mitsui, Sumitomo Corporation, Sojitz Corporation; Qatar's Qatar Electric Power Company; Singapore's Sembcorp Utilities; Belgium's Suez Tractebel; UAE's Abu Dhabi National Energy Company (Taqa), Oasis International Power; Kuwait's Kharafi National; India's Lanco Infratech, Tata Power Company; and UK's United Infrastructure Developers Company. Several companies have pre-qualified on the condition that they partner with another company to bid for the project. 

More than (16) companies have submitted RFQs to build this IPP. The client's advisers are evaluating submissions and a list of pre-qualified companies is expected within the next week. According to the client's schedule, bids are to be invited on May 16, 2011. 

Client has issued a request for qualification (RFQ) to developers. According to the tender schedule, bids are to be invited by mid-May 2011. The project will be implemented on a build-own-operate (BOO) basis. 

It is understood that the Government of Dubai has agreed to provide a guarantee for financing this IPP. Client secured the financial backstop recently. It will now assess the EOIs received from around 30 developers alongside its advisers, UK's HSBC, Mott MacDonald and Clifford Chance. A request for proposals (RFP) is set to be issued to short-listed companies by the end of April 2011. 

Client has received about 30 expressions of interest (EOI) from developers to build this IPP, despite not yet confirming whether the project will carry a government guarantee. Developers are understood to have sent in EOI responses, but may not actually submit bids depending on the final guarantees that the client is able to offer on the scheme. Companies will be pre-qualified and sent the RFP as part of evaluation of the EOIs. Issue of RFP is expected by the end of this month. 

It is understood that the Request for Proposals (RFP) for the main construction contract is expected to be issued in April 2011. Client is expected to sign the contract with private developers in third quarter of 2011.