Japan’s Mitsubishi Hitachi Power Systems (MHPS) will supply three gas turbine generators for the planned 2,400MW Fujairah F3 independent power producer (IPP) project in the UAE.

MHPS confirmed on 25 August it has received an order for three M701 JAC gas turbine generators to be installed at the combined-cycle plant.

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The firm will supply the turbines and other auxilliary equipment through South Korea’s Samsung C&T, the project’s lead contractor.

Samsung C&T confirmed in February that it had been awarded the $953m engineering, procurement and construction contract for the scheme.

Financial close

In July, Abu Dhabi National Energy Company (Taqa) confirmed that the project has reached financial close. Taqa said the total project will cost approximately AED4.2bn ($1.14bn).

A consortium of international multi-lateral and commercial banks will provide project funding. They are Tokyo-based Japan Bank of International Cooperation (Jbic), Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Trust Bank, France’s BNP Paribas and UK-headquartered Standard Chartered Bank.

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MEED earlier reported that the $900m soft mini-perm project financing is split between Jbic and five commercial banks.

Ownership structure

The financial closing follows the signing of the power-purchase agreement and shareholder’s agreement in February between Abu Dhabi Power Corporation (ADPower), Emirates Water & Electricity Company (Ewec), Mubadala Investment Company and Japan-based Marubeni Corporation.

South Korea’s Samsung C&T also confirmed in February that it had been awarded the $953m engineering, procurement and construction contract for the scheme.

The government of Abu Dhabi, through Mubadala and Taqa, will own 60% of the project company, while Marubeni will own the remaining 40%.

Marubeni submitted the second-lowest bid of AED16.812 fils a kilowatt hour (fils/kWh) for the combined-cycle gas turbine scheme.

Another team, led by France’s Engie, submitted the lowest bid of AED16.7901 fils/kWh.

Emirates Water & Eelectricity Comany (Ewec), the emirate’s power offtaker, received six bids for the contract in October.

Early power

Ewec expects to procure early power from the plant by the summer of 2022. The plant is expected to commence full generation by the summer of 2023.

London-headquartered Alderbrook, US-based White & Case and Germany’s Fichtner provided financial, legal and technical advisory services, respectively, to Ewec.

Ewec is part of ADPower, which recently transferred its power and water.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here