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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Hyundai Heavy Industries (KSX:009540.KS) (Ulsan, South Korea), in a consortium with Sidem (Paris, France), a subsidiary of Veolia Environment Company, has been awarded the contract to build a $1.4 billion power and desalination plant that will be located 100 kilometers north of Kuwait City. This is the first phase of the Al-Zour independent water and power project (IWPP).
The contract was awarded by the engineering, procurement and construction (EPC) consortium, which was formed by GDF Suez (OTC:GDSFZ) (Paris) in 2011 to handle the $2.5 billion overall project. Hyundai and Sidem are members of the consortium.
Japanese banks feature prominently in the funding. A company was established for the project, in which the winning consortium has a stake of 40% and the Kuwait government holds 10%. Citizens will be issued with free shares from a 50% interest in the project.
Hyundai will build a $970 million gas-fired power plant, and Sidem will build the water desalination plant in a combined complex. The power and water produced will be sold to the Ministry of Electricity and Water over a period of 40 years.
Construction on the project will begin this month, and completion is scheduled for the end of 2016. The power plant will have a generating capacity of 1,500 MW, and the desalination plant will produce up to 486,000 cubic meters of potable water per day.
View Project Report - 300020791
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The contract was awarded by the engineering, procurement and construction (EPC) consortium, which was formed by GDF Suez (OTC:GDSFZ) (Paris) in 2011 to handle the $2.5 billion overall project. Hyundai and Sidem are members of the consortium.
Japanese banks feature prominently in the funding. A company was established for the project, in which the winning consortium has a stake of 40% and the Kuwait government holds 10%. Citizens will be issued with free shares from a 50% interest in the project.
Hyundai will build a $970 million gas-fired power plant, and Sidem will build the water desalination plant in a combined complex. The power and water produced will be sold to the Ministry of Electricity and Water over a period of 40 years.
Construction on the project will begin this month, and completion is scheduled for the end of 2016. The power plant will have a generating capacity of 1,500 MW, and the desalination plant will produce up to 486,000 cubic meters of potable water per day.
View Project Report - 300020791
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
