Bahrain to start Sitra and Al-Hidd prequalifications
24 October 2024
Bahrain’s Electricity & Water Authority (EWA) is expected to issue the request for prequalifications (RFQ) notice for the contracts to develop the Sitra independent water and power plant (IWPP) project and the Al-Hidd independent water project (IWP) in early November.
According to a source familiar with the projects, the client also intends to float the tender for the two contracts to prequalified utility developers by May 2025.
Sixty representatives from utility developers and contracting firms attended a market-sounding event for the two separate utility build, own and operate (BOO) projects in Manama on 21 October.
The firms that sent representatives to the event in Manama include France’s Engie, Japan’s Mitsui, Saudi Arabia’s Acwa Power, AlJomaih Electricity & Water Company and Ajlan & Bros, and Kuwait’s Gulf Investment Corporation, among others, said sources.
The planned Sitra IWPP is a combined-cycle gas turbine (CCGT) plant, which is expected to have a production capacity of about 1,200MW of electricity. The seawater reverse osmosis (SWRO) desalination facility will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water.
According to EWA, the plant – which replaces the previously planned Al-Dur 3 IWPP – will be developed on a brownfield site and strategically located in Sitra to ensure resource efficiency and service delivery. It is expected to be fully operational by the second quarter of 2029.
The Al-Hidd SWRO plant is expected to have a production capacity of about 60 MIGD of potable water.
Similar to the Al-Sitra IWPP, the plant will be developed on a brownfield site. It is expected to be fully operational by the second quarter of 2028.
The two BOO projects will be procured under a public-private partnership framework for 20-25 years.
EWA’s transaction advisory team comprises KPMG Fakhro as the financial consultant, WSP Parsons Brinckerhoff as the technical consultant and Trowers & Hamlins as the legal consultant.
Some GCC-based utilities and offtakers have ceased tendering integrated water and power desalination plants in line with their decarbonisation targets.
MEED understands that EWA’s Sitra IWPP will likely be Bahrain’s last CCGT plant project. Solar power is expected to account for all future electricity generation capacity.
Bahrain aims to reach net-zero carbon emissions by 2060.
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