ABU DHABI, UAE, June 17, 2009 -- Marubeni Corporation has entered into an agreement with GDF SUEZ for the acquisition of 20% stake of the Shuweihat S2 independent water and power project ("IWPP") in Shuweihat in the Emirates of Abu Dhabi, the United Arab Emirates ("S2 Project"), of which GDF SUEZ originally possessed 40% stake.
In the international competitive bid for the S2 Project in May 2008 which has been launched by Abu Dhabi Water & Electricity Authority ("ADWEA"), GDF SUEZ was awarded by ADWEA. Afterward, the power and water purchase agreement ("PWPA") was executed between GDF SUEZ and Abu Dhabi Water and Electricity Company ("ADWEC" who is wholly subsidiary company of ADWEA) in July 2008, and the special purpose company for the S2 Project was jointly established by ADWEA having a 60% stake and GDF SUEZ having a 40% stake.
This project located at 250 km south west of the city of Abu Dhabi, includes the construction of 1,500 MW power and 100 MIGD seawater desalination plant, and the operation and maintenance of the plant. Under the 25-years PWPA, all power and water production capacity will be sold to ADWEC.
The plant will be supplied and constructed by the consortium of Siemens AG, Samsung C&T Corporation and Doosan Heavy Industries and Construction Co., Ltd. in full turnkey basis. The construction work has been started in December 2008 and the commercial operation will be commenced in summer of year 2011.
The operation and maintenance of the plant is handled by an operation and maintenance company jointly established by Marubeni and GDF SUEZ in a 50% stake each.
The total project cost of USD 2.8 billion will be secured by equity contribution from Marubeni, ADWEA and GDF SUEZ, and will also be financed by a project finance loan from international and regional commercial banks.
The S2 Project is the Marubeni's 4th IWPP projects among ADWEA's 8 IWPP projects in United Arab Emirates, following Taweelah B IWPP Project (2,000MW and 160 MIGD), Fujairah F2 IWPP Project (2,000MW and 130 MIGD) and Taweelah A2 IWPP Project (710MW and 50MIGD).
The United Arab Emirates is one of the most resource-rich countries in the world. It boasts the world's 5th-largest deposits of crude oil and the world's 5th-largest deposits of natural gas, much of which is exported to Japan. It maintains a high investment rating of Aa2 assigned by Moody's. Since the 1990s, the United Arab Emirates has been actively promoting private capital projects. Its foreign-backed power and water projects are regarded as ground-breaking transaction in the Middle East.
Marubeni is expanding I(W)PP business not only in the Middle East but also in Asia and America. Marubeni's power assets all over the world become 25,960 MW (gross capacity) and 7,710 MW (net capacity) including this S2 Project.
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