International Power plc has announced that, together with project partners, the Abu Dhabi Water and Electricity Authority (ADWEA) and Marubeni Corp. of Japan, it has signed a 20-year PWPA with the Abu Dhabi Water and Electricity Co. (ADWEC) for the entire power and water output from the Fujairah F2 IWPP in the UAE. The plant will be owned by the Fujairah Asia Power Co. in which International Power has a 20% equity interest, with 60% held by ADWEA and 20% by Marubeni. The facility will be operated by a 50:50 joint venture between International Power and Marubeni. The total project cost is estimated to be USD 2,800 million, which will be funded by a mix of debt and equity in an 80:20 ratio. For its 20% share, IPR’s equity investment will be USD 112 million. Financial Close is expected by 31 December 2007. The Fujairah F2 IWPP, a greenfield development project, will produce 2000MW of power and 130MIGD of water upon completion. The project is expected to be fully operational by the end of 2010. The plant will use five high efficiency Alstom GT26 gas turbines in combined-cycle mode, and twelve SIDEM 8.3MIGD Multi Effect Distillation desalination units, together with a 30MIGD Reverse Osmosis desalination plant.
