Financial deal negotiation for the Mirfa IWPP, concluded

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Abu Dhabi Water and Electricity Authority (ADWEA) got the 80% equity interest and 20% for a French multinational electric utility company after closing a financial agreement for the Mirfa Independent Water and Power Project (Mirfa IWPP) in Abu Dhabi.

Financial deal negotiation for the Mirfa IWPP, concluded

Financial deal negotiation for the Mirfa IWPP, concluded

As the tenth facility to be constructed under the public-private partnership IWPP model, the Mirfa plant project found 120km from Abu Dhabi city will entail the acquirement of a specific accessible water and power facilities and the development, design, engineering and construction of new power and water facilities, as well as the operation of the plant.

According to the Director General of ADWEA, the project is a sign of the wise vision of the Government of Abu Dhabi and its unrelenting support for the power and water sector. The completion of the project will contribute in delivering power and water to meet the increasing demand in electricity and water.

Once completed, Mirfa IWPP will generate power at 1,600 MW and a seawater desalination capacity of 52.5 MIGD or 238,665 cubic meters per day. Generated from a mix of debt and equity, the funds that will be used for the investment is around $1.5bn. The water and electricity made by the plant will be sold to Abu Dhabi Water and Electricity Company (ADWEC) under a power and water purchase agreement (PWPA) for a 25-year period.

The inking of the financing agreements denotes the commissioning of construction of the project. As the partner of ADWEA, the French electric utility conglomerate has selected a turnkey engineering, procurement and construction (EPC) contractor.  A subsidiary will serve as a subcontractor to the EPC contractor for the new seawater reverse osmosis (RO) facility and another fully-owned subsidiary will handle the operations and maintenance of the power plant.

Commercial operation of the project is said to begin on a phased basis between 2016 and 2017.

Mohamed Dekkak