The Dubai Department of Electricity and Water will shortly sign a contract with South Korean company Hyundai Engineering and Construction for a 360 MWe power and desalination project. A letter of intent was issued in July. Twelve companies bid, of which six were shortlisted.

The project involves installing gas turbines of 360 MWe capacity, three waste heat boilers and a 400 kV substation at Jebel Ali, taking total capacity of the D Station Phase II to 585 MWe. The plant will be commissioned in stages between 2001 and 2002.

Meanwhile, Abu Dhabi invited six international companies to bid to take over the Taweelah A-1 power and desalination plant and develop the site. The expanded project is expected to have a generating capacity of between 700 MWe and 1000 MWe.

The six companies are InterGen, CMS Energy, Enron Corp, Total, Marubeni Corp and National Power. The winning company is expected to be selected by March next year and will take a 40 per cent stake in the company to be set up to take over the scheme on a build-own-operate basis.

The development cost of Taweelah A-1 has not been specified, but $750 million is being invested to build Taweelah A-2 which will have a capacity of 710MWe. The latter will begin commercial operation early in 2001.