Nov. 6. 2007
Marubeni Corporation (“Marubeni”) has successfully won the international bid and reached agreement with Abu Dhabi National Energy PJSC (“TAQA”) on the purchase of the right to own and operate Taweelah A2 power and water project in the Emirate of Abu Dhabi in the United Arab Emirates (“U.A.E.”). Marubeni expects completion of the purchase process by the middle of November 2007, upon satisfaction of all the condition precedent under a Share Purchase Agreement entered into with TAQA.
TAQA owns 94% stake in the project company of Taweelah A2 plant and Abu Dhabi Water & Electricity Authority (“ADWEA”) owns 6% stake. TAQA has launched the international bid to release a 40% stake based on privatization through the utilization of international bidder. The project includes the operation of a combined power and water generation plant with a current capacity of 710 MW of electricity and 50 MIGD of water. The plant is situated in the district of Taweelah, approximately 60 kilometers northeast of Abu Dhabi, and has been in operation since 2001. All production capacity will be sold under the long term power and water purchase agreement to Abu Dhabi Water and Electricity Company (“ADWEC”).
As announced on January 5th, 2005, Marubeni has participated in Taweelah B IWPP Project (2,000 MW of electricity and 160 MIGD of water), which plant is located next to Taweelah A2 plant. Marubeni aims to continue the stable operation of both plants. by utilizing its technical expertise and O&M know-how from both plants..
The project is Marubeni’s 3rd independent water and power project (“IWPP”) in the U.A.E., following Taweelah B IWPP project and Fujairah F2 IWPP project (2,000 MW electricity and 130 MIGD of water) as announced on August 2nd, 2007. Marubeni, with a total capacity of 4,710 MW of electricity and 340 MIGD of water in the U.A.E., will strengthen its high presence as the largest IWPP player in the market, together with contributing to the development of power and water project which is an essential infrastructure in the country. Marubeni has successively won the right to IWPP projects in the gulf region from 2004. This project is Marubeni’s 5th large-scale I(W)PP project in the region.
The U.A.E. is one of the most resource-rich countries in the world. It boasts the world's third-largest deposits of crude oil and the world's fifth-largest deposits of natural gas, much of which is exported to Japan. It maintains a high investment rating of Aa2 assigned by Moody's. Since the 1990s, the U.A.E. has been actively promoting private capital projects. Its foreign-backed power and water projects are regarded as ground-breaking transactions in the Middle East. A large number of similar private capital projects are expected to be launched in this region in order to correspond to increasing demand for power and water.
Marubeni will selectively pursue the business opportunity which is supported by long term purchase agreement and reliable performance guarantee and expand I(W)PP businesses in the region.
Marubeni is expanding I(W)PP businesses not only in the Middle East but also in Asia and America.?Marubeni’s power assets all over the world will become 18,310MW (gross amount) 6,110MW (net amount) including this project.
Profile of Abu Dhabi National Energy PJSC
Based in the Emirate of Abu Dhabi in the United Arab Emirates
Established in June 2005
Engaged in the investments in energy and infrastructure projects
Web site http://www.taqa.ae/