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Oman Business News

$500m Sharjah power deal for Elsewedy-MHPS consortium

Sharjah Electricity and Water Authority (SEWA) has awarded a $500-million engineering, procurement and construction (EPC) contract for the Al Layyah Combined Cycle Power Plant to a consortium of Elsewedy Electric and Mitsubishi Hitachi Power Systems (MHPS).

The1,026.3 megawatt gas-fired combined cycle power project is located in Al Layyah in Sharjah. The power plant will consist of one power block made by MHPS containing two M701F gas turbines, two heat recovery steam generators, one steam turbine, and three generators. The plant is expected to start producing energy by 2020.

Elsewedy Electric’s scope of work, representing approximately 65 per cent of the project works, includes engineering, procurement and installation of the balance of plant in addition to the erection and installation of the MHPS gas and steam turbines.

In addition, Elsewedy Electric will be responsible for the site preparation, levelling and the civil, construction and site utilities for the project. Demolition and relocation works are also included within the existing Al Layyah power station. Water structure with off-shore works is also managed by Elsewedy Electric.

MHPS scope of works includes fabrication, supply, testing and commissioning of the power block equipment in addition to joint project management.

The project features the first EPC-plus-finance project in UAE utilities power market. Japan’s export credit agency, the Japan Bank for International Cooperation (JBIC), signed on March 28 a buyer's credit agreement (export loan) with SEWA for the project, which is co-financed by Société Générale, Tokyo Branch (lead arranger); ING Bank, a branch of ING-DiBa AG; and Standard Chartered Bank, Tokyo Branch. The co-financed portion will be covered by insurance from Japan’s Nippon Export and Investment Insurance (NEXI).
  • Sharjah Electricity and Water Authority
  • EPC contract
  • Al Layyah Power Plant
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