Hanjung selected as preferred bidder for UAE power project

Published June 17th, 2001 - 02:00 GMT

South Korea's Hanjung has been selected as the preferred bidder for the desalination and power plant package of a major project in the Emirates, state-run UAE Offsets Group (UOG) said Saturday, June 16. 


UOG, in a press statement, said it would hold detailed negotiations with Hanjung over the coming weeks to draw up an agreement on commercial and technical issues. 


Negotiations will also continue with France's Sidem and Fisia Italimpianti of Italy, said the UOG, which has been mandated to implement the billion-dollar project funded by the Abu Dhabi government. 


Hanjung made a 778-million-dollar bid to build a 100 million gallon (380 million liter) per day desalination plant and 500 megawatt power station, in addition to 120 megawatts for internal consumption. 


Sidem and Italimpianti came in with bids of $803 million and $894 million respectively. An earlier proposal had called for a 218 megawatt power plant. 


A separate transmission package involves the construction of a 185-kilometre (115-mile) water pipeline, a 25-kilometre (16-mile) pipeline, and storage tanks and other facilities. 


Both packages are due to be awarded by the end of July. Abu Dhabi is to fund the launch 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 privatization of the water and power sectors in the United Arab Emirates. — (AFP) 


© Agence France Presse 


© 2001 Mena Report (www.menareport.com)

You may also like