Taqa submits binding offer for GS Inima
22 April 2025
Abu Dhabi National Energy Company (Taqa) has submitted a binding offer to acquire Madrid-headquartered water desalination developer and investor GS Inima from its parent firm, South Korea-based GS Engineering & Construction.
According to an industry source, negotiations are under way after Taqa submitted a lone bid to acquire the company last month.
Taqa and a pension fund from Canada were understood to have been shortlisted to bid in the sale of GS Inima.
It is understood that the Canadian pension fund did not submit a bid.
South Korea-based media reported in October 2024 that the sales contract was expected to be finalised "as early as the beginning of next year".
GS Inima is estimated to be valued at about KRW1.3tn ($836m) to KRW2tn ($1.4bn). MEED understands that GS Inima's revenue reached KRW493bn in 2023 and its net profit was KRW52.2bn.
GS Engineering & Construction acquired Inima from Spanish builder Obrascon Huarte Lain for an estimated $312.4m in 2011.
It saw off competition 14 years ago from three contenders in the final bidding round, which included fellow South Korean contracting firm Posco Engineering & Construction.
In the Middle East and North Africa region, GS Inima won the contract to develop and operate the Shuweihat 4 independent water project in Abu Dhabi in 2023. The $44m seawater reverse osmosis desalination project reached financial close in December last year.
It is also leading the team that is developing two independent water projects in Oman, while actively pursuing new contracts in Saudi Arabia and Bahrain, as well as in North Africa.
A successful bid by Taqa will further expand its portfolio, which comprises Abu Dhabi power transmission and water distribution, water treatment and energy services companies, in addition to power generation fleets.
Photo credit: Taqa Fujiarah 2 (F2) plant
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Photo credit: Siemens Energy, for illustrative purposes only
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April 2025: Data drives regional projects
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Includes: Commodity tracker | Construction risk | Brent Spot Price | Construction output
MEED’s May 2025 report on the UAE includes:
> COMMENT: UAE is poised to weather the storm
> GOVERNMENT & ECONOMY: UAE looks to economic longevity
> BANKING: UAE banks dig in for new era
> UPSTREAM: Adnoc in cruise control with oil and gas targets
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UAE growth prospects head north
25 April 2025
MEED’s May 2025 report on the UAE includes:
> COMMENT: UAE is poised to weather the storm
> GOVERNMENT & ECONOMY: UAE looks to economic longevity
> BANKING: UAE banks dig in for new era
> UPSTREAM: Adnoc in cruise control with oil and gas targets
> DOWNSTREAM: Abu Dhabi chemicals sector sees relentless growth
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> CONSTRUCTION: Dubai construction continues to lead region
> TRANSPORT: UAE accelerates its $60bn transport pushhttps://image.digitalinsightresearch.in/uploads/NewsArticle/13754369/main.gif -
UAE is poised to weather the storm
25 April 2025
Commentary
John Bambridge
Analysis editorDespite the rising turmoil in global markets due to US-imposed tariffs, the UAE is well positioned to cope thanks to a combination of strong fiscal and macroeconomic fundamentals and government-supported project spending.
Abu Dhabi is set to comfortably achieve a fiscal surplus for the fifth year running in 2025, even with the recent dip in global oil prices, which has still brought prices nowhere near the $50-a-barrel fiscal breakeven point that according to the IMF would tip the UAE into the red. Also working in the government’s favour is the expected increase in the country’s oil production output due to the phasing out of some of its voluntary production cuts this year.
Beyond oil, the UAE’s greater degree of non-oil diversification relative to other oil-exporting markets in the Gulf and wider region provide it with a more stable revenue base, while the country’s financial institutions remain on a strong growth heading – thanks to their burgeoning project finance loan books.
The market confidence is also reflected in the growth of residential property sales in Dubai by 30% in 2024 – with housing being one of the main contributions to the albeit restrained 2% consumer price inflation in the country at large.
Economic strength
The UAE also retains its role as an economic beacon for the Middle East and beyond. Dubai real estate purchases by Chinese and Russian buyers saw double-digit growth in 2024 and could account for more than 30% of sales in 2025.
The UAE economy is being staunchly supported by both public and private spending in the projects sector, which hit $94bn in contract awards for the second year running, according to regional projects tracker MEED Projects – far in excess of the $30bn average in the three years before.
The projects boom is being driven by a combination of expansionary government spending on infrastructure and renewed investment in property and real estate by both state-owned and private developers alike. There are about $140bn-worth of projects currently under execution in the energy, infrastructure and utilities sectors, and a similar figure in the building sector alone.
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GE Vernova to divest Hamriyah IPP stake
25 April 2025
US-based GE Vernova is looking to divest its interest in the 1,800MW Hamriyah independent power producer (IPP) in the UAE's northern emirate of Sharjah, sources familiar with the process tell MEED.
Sharjah Hamriyah Independent Power Company (Shipco) is the project company that owns and operates the combined-cycle gas turbine plant.
GE Capital owns a 25% stake in the project company. The other shareholders are Sumitomo, which owns 35%; Sharjah Asset Holding Management, 25%; and Japan's Shikoku Electric Power, 27%.
MEED understands that international bank BNP Paribas is running the sale process for GE Vernova, which expects to receive non-binding offers "within a month".
One of the sources said that Saudi, UAE and other international utility developers and investors are likely to bid for GE's stake in the project.
Sharjah Electricity & Water Authority (Sewa) awarded a joint venture of Japan’s Sumitomo and US-based GE the contract to develop the 1,800MW CCGT project, Sharjah's first IPP, in December 2018. The project reached commercial operations in October 2023.
MEED has requested comments from GE Vernova.
Energy-efficient gas turbines
The power plant runs on three GE Vernova 9HA.01 turbines, which GE Vernova describes as its most energy-efficient gas turbines to date.
GE Vernova’s Gas Power business has provided turnkey engineering, procurement and construction (EPC) services and delivered the three 9HA.01 gas turbines powering three H84 generators, three STF-D650 steam turbines powering three A74 generators, and three heat recovery steam generators for the facility.
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The project reached financial close in May 2019 with support from private banks Japan Bank for International Cooperation (JBIC) and Nippon Export & Investment Insurance.
The 24-year, $1bn financing consists of two tranches.
A group of private financial institutions including Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, the Norinchukin Bank, Societe Generale, Standard Chartered Bank and kfW-Ipex agreed to provide the first $516m tranche.
JBIC agreed to provide the second tranche of $555m.
The project marks Sewa’s first IPP, with previous plants all having been developed under standard EPC contracts. The project is part of Sewa’s plans to boost capacity and reduce reliance on imports of electricity from Abu Dhabi, which have grown steadily over the past decade.
Abu Dhabi state utility Emirates Water & Electricity Authority said that the commissioning of the plant in 2023 was expected to reduce its electricity exports, although this will be offset by the addition of offshore demand from Abu Dhabi National Oil Company starting in 2026.
Photo credit: GE Vernova, for illustrative purposes only
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