The Government of Bahrain has sold off the Hidd power and water station for BD279 million ($738 million) in the biggest privatisation project in the country’s history.

Belgian electricity company, Suez Energy International, together with British power supplier International Power (UK) and Sumitomo Corporation (Japan), has recently signed a 20-year power and water purchase agreement (PWPA) with the Ministry of Electricity and Water (MEW) for the Hidd plant.
The project has been awarded on a build-own-operate basis (BOO), and will be owned 40 per cent by International Power, 30 per cent Suez Energy International, and 30 per cent Sumitomo Corporation.
The PWPA will cover the output from the existing 910 MW combined cycle gas turbine (CCGT) and 30 million gpd (gallons per day) water desalination facility, together with a new-build 60 million gpd desalination expansion, which is expected to be in operation by the end of 2007.
The total project cost is estimated to be $1.25 billion, which will be funded by a mix of debt and equity in the ratio 85:15.
The operation is expected to meet 20 per cent of Bahrain’s total power needs and 65 per cent of its water demand.
The total project cost includes the purchase price for the existing plant, the cost of the 60 million gpd extensions, its integration into the existing assets, and the financing costs.