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US$1.5 billion power project contract awarded



Abu Dhabi Water and Electricity Authority (ADWEA) has awarded Korea Electric Power Corp (KEPCO) and Sumitomo Corp. the contract for a US$1.5 billion power project in the UAE. The companies will sign the final agreement by February 2011 after raising funds through project financing. The project consists of a 1,600MW gas-fired power plant, to be built in Shuweihat, 260 km west of the capital Abu Dhabi, and scheduled for commercial operation in March 2014, according to KEPCO.

KEPCO and Sumitomo beat four other groups, including International Power and Marubeni Corp. They had won priority negotiation rights to build and operate the plant in an earlier stage of the bidding. According to news agency, AFP, the consortium will oversee the construction by South Korea's Daewoo Engineering and Construction and Germany's Siemens, while Kepco will operate the plant and sell electricity from the facility for the next 25 years.

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