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3 May 2006 - Bahrain's first independent power and water plant, run by the Al Ezzel Power Company, began commercial operation on schedule last Sunday following the completion of phase I of the project.
Al Ezzel Power Company, a consortium of three companies, won the right to build, own and operate the station on June 27, 2004 in a bidding contest led by the Ministry of Finance that attracted a record number of bids.
Al Ezzel Power Company is owned by Suez Energy International (45 per cent), Gulf Investment Corporation (45 per cent) and the Pension Fund Commission (10 per cent).
The $500m combined cycle power plant will provide electricity to the Ministry of Electricity and Water under a 20-year Power Purchase Agreement. The plant is fired with natural gas supplied by the Bahrain Petroleum Company (Bapco) under a long-term Natural Gas Sales Agreement. The Company had entered into a 20-year Power Purchase Agreement with Ministry of Electricity and Water in 2004 and achieved financial close in November last year.
Phase I will make available 470 MW of generating capacity to the Bahrain national grid, thus contributing to a reliable supply of electricity during the coming hot summer months. Phase II is scheduled for completion by May 1st next year and will bring the total generating capacity of the Al Ezzel Power plant to 950 MW.
AEPC Chairman, Shafic Ali, said: "The completion of Phase I in 21 months is a testimony to the close collaboration between the various ministries involved; the diligence of Siemens, our EPC contractor; and the efforts of all in the Company. This achievement vindicates the policy of the Kingdom of Bahrain of entrusting the future of power generation to independent producers."
AEPC Vice-Chairman, Guy Richelle, said: "The plant utilizes the latest technology to ensure efficiency, reliability and low operation and maintenance costs which translates, into benefits for Bahrain. The plant's gas turbine combined cycle technology minimizes the environmental impact through lower emissions."
The Undersecretary for the Ministry of Electricity and Water Dr Abdulmajeed Alawadhi, said: "The commissioning of Phase I will bring welcome additional capacity to the grid before the start of the summer months when demand for electricity increases considerably."
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