Power Engineering - Abu Dhabi's power privatisation to continue

Abu Dhabi, 14 Oct. 2003 -- The UAE and Iraq continued to dominate the conference proceedings Tuesday on the second day of POWER-GEN Middle East 2003, with the spotlight on the successful privatisation of Abu Dhabi's power and water sector and the reconstruction of Iraq's damaged power infrastructure.

The second day's session "Country Power Generation Spotlights" started with a presentation by H.E. Abdulla Saif Al Nuaimi, Director of Privatisation, Abu Dhabi Water & Electricity Authority (ADWEA) who gave an overview of the power sector here.

Abu Dhabi has an excellent track record in speedy privatisation of its power sector and from April 1999 to July 2003, four independent water and power projects were set up which is a record, said Al Nuaimi. "Abu Dhabi is committed to privatisation and we are looking at some more projects," he told delegates at the conference, adding that selection of a developer for the fifth power and water project, the Al Mirfa, is underway.

"Also in progress is the Taweelah RO independent water project which is still under evaluation," he added.

Continuing on the Iraqi power sector, Dr. Karim Hasan, Director-General, Iraq Electricity Commission underscored the need for investment in Iraq's power sector and outlined the short-term, medium term and long-term approach.

"We are hoping to execute our plans up to the year 2012 on a priority basis," he said, expressing concerns about the funding. However, bankers in another session were upbeat that once the US AID programme concludes, other forms of funding will come into Iraq.

"Iraq is a rich country with huge oil resources and therefore solutions are not difficult," said Mark Lemmon, Director - Project & Export Finance, HSBC Investment Bank. "When aid programmes run out the next will be trade finance, export credit and private financing. Private companies too are likely to come in as equity providers," he said.

The second session Tuesday discussed the power sector in Algeria with the country in dire need for foreign investment in this crucial sector. The installed capacity will grow from 6000 MW to 8000 MW by 2010 and interconnections with Spain and Italy are planned, said John Rector, Project Manager, Black & Veatch Corporation, USA.

A special spotlight on the UAE's ambitious Dolphin Gas Project provided an overview of the project status. "The project is progressing well and four EPC contracts will be signed next year and some others later," said Ossama Khoreibi, Business Development Manager, Dolphin Energy Ltd, UAE.

The first gas under the Dolphin project from Al Ain to Fujairah is likely to start flowing from January this year, he added. Another session examined Abu Dhabi's Shuweihat S1 project and the role of the power project developer.

The session was rounded off with a presentation on financing water and power projects.

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