Taweelah A1 commissioned

Abu Dhabi's second independent water and power project (IWPP), the $1.5 billion Taweelah A1, was formally commissioned yesterday, with more projects to be privatised in future.

Sheikh Diab bin Zayed Al Nahyan, chairman of Abu Dhabi Water and Electricity Authority (Adwea), unveiled the plaque of one of the largest IWPPs in the region, and one of the largest cogeneration plants in the world.

The project was awarded in 2000 by Adwea to the joint consortium of France's Total and Belgium's Tractabel who jointly own 40 per cent of the project company called Gulf Total Tractabel Power Co (GTTP), while the remaining 60 per cent is owned by Adwea.

Abdullah Saif Al Neimi, director of Privatisation, Adwea, said the government is keen to take forward Abu Dhabi's ambitious power and water privatisation programme.

"The Taweelah A1 project is the second project to be commercially operational after the Taweelah A2. The Shuweihat project is under construction and all indications are that it will be operational by mid-2004," he said.

While the Umm Al Nar IWPP has just been awarded to an international consortium and financial close will take place in July, the fifth IWPP, the Mirfa project, is also underway. "Selection is on for advisors to the project," he said.

Jean Privey, president, Gas and Power, Total, described the project as an "epoch milestone" and said the investment returns are good to motivate developers to undertake such projects.

"The project is a reference for future projects," he said.

Praising Adwea for being the first to embark on privatisation in this region, Dirk Beeuwsaert, chief executive of Tractabel Electricity and Gas International, said the consortium is the first to acquire a major part of the existing facilities, managing its upgrade and building a large extension, making it the largest operating power and desalination plant in Abu Dhabi.