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3 July 2003 - Abu Dhabi has given its final approval to two planned power ventures with a combined capital of more than Dh2bn which industry sources said would give a strong push to the emirate's drive to privatise its fast growing power and water sectors.
United Arabian Power Company (UAPC), to be 100 per cent government owned, has a paid-up capital of Dh1.28bn ($348.7m), while Arabian Power Company (APC) has a capital of Dh816m ($222.3m).
The two companies, which had been planned within ambitious privatisation programmes in Abu Dhabi's electricity and water sectors, were created under two decrees issued by Sheikh Khalifa bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and deputy supreme commander of the UAE armed forces. UAPC will control 60 percent of APC while the rest will be owned by ITM Investment Company Ltd, a joint venture set up recently by the London-based International Power plc, Tokyo Electric Power Company (TEPCO), and Japan's Mitsui & Co Ltd.
The venture was announced by Abu Dhabi Water and Electricity Authority (ADWEA) after awarding the Umm Al Nar power plant privatisation project to that consortium. Under the terms of the agreement announced recently by ADWEA, APC will acquire the existing Umm Al Nar Power Company (UANPC) assets, having a contracted capacity of 805 MW of electricity and 157 million gallons of desalinated water per day. Industry sources put the value of those assets at nearly Dh3.7bn ($1bn). The agreement includes the construction of a new power and desalination units. "The ratification of the two new companies will give a strong push to Abu Dhabi's privatisation drive in its fast growing electricity and water sector," an industry source said.
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