Consultants named for Al Mirfa project

The sell-off and expansion of Abu Dhabi's fifth independent water and power project (IWPP), Al Mirfa, has moved forward with the appointment of technical, financial and legal consultants.

Germany's Fichtner has been appointed technical consultant while HSBC has been appointed the financial consultant and White and Case has been selected as the legal consultant, confirmed officials.

"The Mirfa project is progressing as per plans with key advisory teams falling in place," a senior official of Abu Dhabi Water and Electricity Authority (Adwea) told Gulf News.

He said the response for financial consultant was "very good" with leading foreign banks bidding. Among those in the race were ABN Amro, Citibank, BNP Paribas, Credit Agricole Indosuez, Societe Generale and some others.

"Competition was close with leading banks vying for the consultant's role, particularly because Adwea's projects are prestigious," said a senior banker involved with the project.

"Since Adwea is a pioneer in privatisation of water and power plants, it helps banks to bid for similar projects in other GCC countries which are embarking on selling off their utilities. It is good for HSBC to have won the race," he added.

Both Fichtner and White and Case have been involved in Abu Dhabi's power sector in the past.

While the exact project cost is yet to be finalised, the Al Mirfa IWPP involves the acquisition of the existing 190 MW and 39 million gallons per day (mgpd) brownfield plant in the capital's Western Region and expanding it to reach 1,500 MW of power generating capacity and 100 mgpd of desalination capacity.

Currently, the Al Mirfa plant is managed by the Al Mirfa Power Co.

Earlier this month, Abu Dhabi's second IWPP, the Taweelah A-1, became commercially operational. The third IWPP, the Shuweihat-1, is under construction, while a developer has been selected for Abu Dhabi's fourth IWPP, the Umm Al Nar water and power plant.