BAHRAIN-based First Energy Bank (FEB) has acquired a nine per cent stake in the Al Dur Independent Water and Power Production (IWPP) project, the largest of its kind in Bahrain.

With an investment of $50 million, the world’s first Islamic investment bank exclusively focusing on the energy sector has become a significant shareholder of the project that is expected to become fully operational in the summer of 2011.
The $2.2-billion Al Dur project, located on the southeast coast of the kingdom, is slated to produce 1,234 MW of power and 48 million gallons of water, representing an important source of water and power that will help meet the rising demand in the country.
The project consists of a combined cycle gas turbine power plant and a reverse osmosis (RO) technology desalination plant.
“Representing a solution to the rising demand of both water and electricity in the kingdom, the Al Dur water and power production project is a prime example of the nature and scope of investment we are looking for,” Mohamed Ghanem, deputy CEO and chief investment and business development officer, said.
“We are one of five new Bahrain-based shareholders to enter into the project, and are very excited about the opportunity,” he added.
Both Gulf Investment Company and GDF Suez were awarded the project last year. Under a 25-year power and water purchase agreement, the project will provide both electricity and water to the Electricity and Water Authority beginning in the summer of 2010.