Abu Dhabi F3 IPP nearing financial close

2 Jun 2020
Abu Dhabi F3 IPP nearing financial close


Abu Dhabi-based Emirates Water & Electricity Company (Ewec) awarded a contract to Japan’s Marubeni Corporation to develop the 2.4GW Fujairah 3 (F3) independent power project (IPP) in February

 

The special purpose vehicle (SPV) established to develop the Fujairah 3 (F3) independent power project (IPP) is expected to reach financial close for the project by mid-June, according to sources close to the project.

Energy & Utilities reported in February that Abu Dhabi-based Emirates Water & Electricity Company (Ewec) had awarded the contract to Japan’s Marubeni Corporation to develop the 2.4GW Fujairah 3 (F3) independent power project (IPP).

The Japanese developer signed the power purchase agreement (PPA) and Shareholder’s agreement with Ewec on 16 February.

Marubeni will hold a 40 per cent stake in the special purpose vehicle (SPV) set up to develop and operate the plant, with the Abu Dhabi government to hold the remaining 60 per cent stake.

First power from the project is scheduled to come online in summer 2022, with the full capacity to come online by the summer of 2023.

According to sources close to the project, the SPV is targeting to reach financial close for the scheme by the middle of June.

The Japanese developer submitted the second lowest bid in October last year during a competitive tendering process. The developer’s bid of 16.812 7901 fils a kilowatt hour (fils/kWh) was slightly higher than the AED16.7901 fils/kWh second lowest bid submitted by France’s Engie.

South Korea’s Samsung C&T has been appointed by the developer to provide engineering, procurement and construction (EPC) services worth $960m for the project.



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