Ministry of Finance - Kingdom of Bahrain

Press Releases>> Purchase Price for Al Hidd Power & Water Station US$ 738 Million. Total Project Value US$ 1.25 Billion

Posted: 22 January, 2006 Reads:2781

The Minister of Finance, H.E. Shaikh Ahmed bin Mohammed Al Khalifa, said that the privatization of Al Hidd Power & Water Station came within the framework of the privatization strategy adopted by the Government of the Kingdom of Bahrain and its aim of enhancing the role of the private sector in the development process and of creating the appropriate environment for attracting more foreign and local investment. The legal contracts of the process were signed earlier today at the premises of the Ministry of Finance. Signing for the Kingdom of Bahrain were H.E. Shaikh Ahmed bin Mohammed Al Khalifa, H.E. Shaikh Abdulla bin Salman Al Khalifa, the Minister of Electricity & Water, H.E. Dr. Abdulhussain Ali Mirza, Minister of State and Chairman of the National Oil and Gas Authority and H.E. Shaikh Salman bin Khalifa Al Khalifa, Chairman, Bahrain Petroleum Company "Bapco". The purchase price proposed by the winning bidder is US$ 738 million. The total project value amounts to US$ 1.25 billion. This includes the purchase price for the existing plant and the cost of establishing the third phase of the project. The winning bidder is a consortium comprising International Power / Suez Energy International / Sumitomo Corporation. The Minister said that the achievements witnessed in the financial, economic and investment sectors in Bahrain reflected the support extended to those sectors by His Majesty King Hamad bin Isa Al Khalifa, His Highness the Prime Minister, Shaikh Khalifa bin Salman Al Khalifa and His Highness the Crown Prince and Commander-in-Chief of the Bahrain Defence Force, Shaikh Salman bin Hamad Al Khalifa. He said that similar steps had been undertaken in key economic sectors like transport, telecommunications & ports. He said the privatization of Al Hidd Power & Water Station was a turning point for the production of electricity and water in Bahrain. The process would allow benefits to come from the technical and administrative capacities of the private sector in this area. The deal follows the signing of the contracts for Bahrain’s first Independent Power Plant (IPP), Al Ezzel. The entire process was conducted in full transparency. This covers the delivery of the Request for Proposal (RFP) Document to pre-qualified bidders on the basis of having met the minimum qualification criteria set out for participation in the tender process, the opening of the technical bids and finally the opening of the commercial bids and the announcement of the winning bidder. The Minister expressed his appreciation for all those who participated in the achievement. It represented a model for constructive cooperation between different ministries and public entities, particularly members of the joint committee of the Ministry of Finance and the Ministry of Electricity & Water who reviewed the technical, legal and financial aspects of the process. He also praised the crucial role of the Tender Board in managing the process and ensuring full compliance with the standards of the RFP Document and the Tender Law regulations.