Bids in for transmission package of UAE desalination, power plant

Published June 6th, 2001 - 02:00 GMT

Two consortia and two companies have bid to build the transmission package of a desalination and power plant as part of a $1 billion project in the United Arab Emirates (UAE), the state-run UAE Offsets Group (UOG) said Tuesday, June 5. 

 

A consortium comprising Athens-based Consolidated Contractors International Co. and Italian firms Saipem and Snamprogetti submitted the lowest base price of $417 million, UOG said. South Korea's Hanjung came in with the highest bid at $646 million, while the local Pan Arab Enterprises for Pipeline Construction's price was $430 million, and a consortium of locally-based Al Jaber Energy Services and Technip Germany bid $428 million, it said. 

 

The transmission package involves the construction of a 185-kilometre (115-mile) water pipeline to Al-Ain and the northern emirates, another 25-kilometre (16-mile) pipeline to the eastern town of Al-Dhaid, and storage tanks and other facilities. 

 

UOG said that construction on both the transmission package and the $560 million desalination and power plant package of the project would be completed in two years. France's Sidem, in partnership with South Korea's Hyundai Heavy Industries, submitted the lowest price of $560 million for the desalination and power plant package in April. 

 

Both packages are due to be awarded by the end of July. 

 

The proposals for the plant in Fujairah cover several desalination technologies, said the UOG, which has been mandated by the Abu Dhabi government to implement the project on a fast-track basis to meet growing demand for water in the desert state. 

 

The package involved the engineering, procurement and construction of a plant, designed to run on both diesel oil and gas, to produce 100 million gallons (380 million litres) a day of water and more than 100 megawatts of electricity. 

 

Abu Dhabi is to fund the launch of the project but a foreign partner will later be selected to take a stake of up to 49 percent and operate the facilities, as part of the UAE's privatization of the water and power sectors, said UOG.—(AFP) 

 

© Agence France Presse 

© 2001 Mena Report (www.menareport.com)

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