GDF Suez has signed a 25-year power and water purchase agreement (PWPA) for the Mirfa Independent Water and Power (IWPP) project with the Abu Dhabi Water and Electricity Company (Adwec), the single buyer and seller of water and electricity of Abu Dhabi.

GDF Suez holds a 20 per cent equity interest in the project with the remaining 80 per cent held by Adwea (Abu Dhabi Water and Electricity Authority).

Located 120 km from Abu Dhabi, the Mirfa project is the emirate’s 10th facility to be built under the public-private partnership model. The project will involve the acquisition of certain existing water and power facilities, the development, design, engineering and construction of new power and water facilities, as well as the operation of the plant. When completed, and with the existing and new facilities fully integrated, Mirfa IWPP will have a total power capacity of 1,600 MW and a seawater desalination capacity of 52.5 million gallons per day (mgpd).

Gerard Mestrallet, chairman and CEO of GDF Suez, said: “We are pleased to successfully formalise the framework for our exclusive partnership with Adwea for the Mirfa project, our sixth development in the UAE. This new project will allow us to pursue our growth strategy in the region and to meet the increasing demand for both electricity and water in the UAE.”

GDF Suez has selected a turnkey engineering, procurement and construction (EPC) contractor consortium comprising Hyundai Engineering and Construction Company and Hyundai Engineering Company from Korea and Ansaldo Energia from Italy.

Degremont, a subsidiary of Suez Environnement, will be responsible for the new seawater reverse osmosis (RO) facility as a subcontractor to the EPC contractor. Commercial operation of the project is expected on a phased basis between 2016 and 2017. The project is targeted to satisfy Abu Dhabi’s rising demand for electricity and water as well as support the development of the UAE’s Northern Emirates.

The project will be built at a capital cost of approximately $1.5 billion funded by a mix of debt and equity.