Nine foreign companies bid for Dewa power tender

Dubai: Nine international companies have submitted bids for a technical study to develop clean coal-based power, the Dubai Electricity and Water Authority (Dewa) said yesterday.
In line with the strategy of Dubai’s Supreme Council of Energy to ensure supplies to meet the growing energy requirements and diversifying energy sources, Dewa last November 1 invited bids for a technical study on coal-based power generation in Dubai (currently oil and gas is used in power and desalination plants).
“This move aims to promote sustainable development and global position of Dubai, and preserving the environment and natural resources from pollution,” a Dewa spokesperson said.
Saeed Mohammad Al Tayer, managing director and CEO of Dewa, said: “This study is a key step towards the implementation of the energy diversification strategy adopted by the Dubai’s Supreme Council of Energy, in which coal is set to become part of Dubai’s energy portfolio. The strategy aims to diversify energy sources to ensure energy supply and meet the growing energy demands in Dubai.”
The study is divided into two phases. In the first phase, the selected consultant will conduct a preliminary analysis of the type of technology, type of coal and sourcing strategy which best suit Dewa’s requirements, to include logistics and infrastructure requirements, as well as environmental impacts in association with the first coal-fuelled power plant for Dewa.
The second phase will cover the development of the conceptual design for this power plant, along with the request for proposals, and the assessment and development of new regulatory elements for clean coal-based power plants.
Bid assessment
“The assessment of the bids will take place in January and February. Dewa will follow the best international practices related to clean coal-based power plants, and will count on the expertise of a reputable consultant to run the project.
“The successful bidder, and award of the contract are expected to be announced in the first quarter of 2011,” Al Tayer said.
He expressed his satisfaction with the number of bids received from international organisations in this vital field which reflects the confidence and the desire of investors to invest in such large-scale projects that are adopted and supported by the Government of Dubai.
Walid Salman, vice-president of projects and engineering and Strategy and Business development, told Gulf News: “Application of coal-based power generation in Dubai is the first of its kind in the region.
“It is a very new experience and technology and especially as we are going to apply the clean coal and not the conventional way.”
He was not sure if Dewa will apply this project by itself.
However, Salman said: “It is difficult for Dewa to do it itself and the study will recommend the best way for implementation; either with a strategic partner or with independent power production.
“Meanwhile, Dewa is evaluating the bids submitted, looking at technical and strategic parts of the project in addition to the regulations, requirements and the best areas and practices to be operated.”
He said that a Dewa team headed by Al Tayer has investigated coal power plants worldwide for a better understanding of such a new project.
“We visited many places where such a technology is approved such as China, Korea, Europe and so on to have a clear overview about coal-fired power plants.”
Satisfactory studies
However, he added: “The studies submitted by the bids are up to the standard and very competitive and the selected consultant should be comprehensive to meet all the requirements and demands of this project.”
Salman said that after five months of the announcement of the successful bid, they will go ahead with the implementation of clean coal-fired power plant.




