08 December 2013
ADEWA/DEWA Privatization Program (UAE 민자발전 제도 및 현황)
INTERNAL/REGIONAL USE ONLY
The information contained herein has been compiled using various sources such as the web and specialized press.
It is not based on any discussions or interviews with DEWA or governmental representatives, consultants, etc.
WHAT DEVELOPERS ARE DOING?
SELECTION OF PROSPECTIVE ADVISROS, CONTRACTORS, PARTNERS.
DUBAI UTILITY REGULATORY FRAMEWORK
DEWA FACTS and FIGURES
THE NEXT I(W)PP
UAE 전력산업의 동력과 도전
아부다비 전력산업 주관 주무부처
아부다비 전력청 주요 Activities
UAE IWPP Structure
CONTENT
1. DEVELOPER(무슨일을 하는가?)
2. DEWA(두바이 IWPP)
3. ADWEA(아부다비 IWPP)
Key responsibilities of the developer (Developer가 하는일)
• Drive the development process to win projects
• Manages the BD project and is ultimate responsible for it until handover.
• Defines the resource requirement and the development budget.
• Manages the project team and foster team spirit
• Defines and manages project planning.
• Defines work & priorities for local BD team members and follows up their activities.
• Organizes regular project meetings for the local BD team.
• Organizes, together with the CBD, the Project Review meeting.
• Coordinates the preparation of the required BD project documentation and insure proper sign-off by the project team
• Properly manages adequate archiving of all key documents on EDMS.
• Organize pre-bid sign-off process and make sure financial model has been audited.
• Organize project handover.
• Monitors & approves all development expenses and re-invoicing / back- charging.
Selection of Advisors, Contractors, Partners
Selection Activities Selection Activities Selection Activities
Financial Advisors EPC Contractor / GT & LTSA supplier Equity partners
Tax / Accounting Advisors O&M Contractors Lenders & ECA
Legal Advisors Insurance Advisors / Broker Technical Advisors Owner’s Engineer
Lobbyists / Business Consultants Other Contractors
Market Advisors
Advisors includes Lenders advisors
PRIVATIZATION OF DUBAI UTILITY SECTOR: LEGAL FRAMEWORK (1/3)
Dubai Supreme Council of Energy
Established by law No. 19 of 2009 (31 Aug 2009)
Independent entity that will supervise the energy sector and ensure sustainable energy and power supply (incl. alternative and nuclear energy) to meet the energy needs of the Emirate of Dubai
Consultative Committee: Dubai Executive Council appoints the secretary-general, and
Qualified members representing the energy sectors in Dubai, appointed by Ruler’s Decree
Annual budget issued by the Executive Council
Current members:
- Dubai Petroleum Affairs (DPA) - DUBAL - Dubai Supply Authority (DUSUP) - ENOC - Dubai Petroleum Establishment (DPE)
- Dubai Nuclear Energy Committee (DNEC) - Dubai Municipality (DM)
Chairman Sheikh Ahmed bin Saeed Al Maktoum
(Also Chairman &
CEO of Emirates Airline Group*)
Deputy Chairman Saeed Mohammad Al Tayer
(Also MD & CEO of DEWA*)
(*) among others
New Utility Regulator
Independent body, created by the Dubai Executive Council on 11 March 2010
Broad role:
o to set-up a legislative and monitoring agency aiming at developing rules and regulations for a new investment model for licensing new power generation and water desalination companies
o to create a transparent system for private investors incl. water & electricity tariff
PRIVATIZATION OF DUBAI UTILITY SECTOR: LEGAL FRAMEWORK (2/3)
Specific role / actions?…by the Consultant
DEWA Consultancy Services for IWPP Model
Tender launched on 31 December 2009 (following DEWA’s decision to cancel Hassayan on a government-procured EPC basis)
Awarded in June 2010 to HSBC, Mott Mac Donald and Clifford Chance
14 bids received. Shortlisting in April 2010:
o E&Y, RBS, Freshfields Bruckhaus Deringer and S&L o KPMG, Worley Parsons, First Economics and DLA Piper o BNPP, C&P and Lahmeyer
o McKinsey & Co, Emirates NBD, Western Consulting Group (US) and A&O
Scope:
o review and development of the legislation and regulatory framework governing the establishment of the IWPP Program
o Launch, evaluate, award and implement the first IWPP
DEWA’s first I(W)PP RFP expected in Q1 2011
McKinsey and Lahmeyer were later awarded contracts to respectively (1) prepare DEWA’s Energy Strategy for 2030 and (2) investigate solar projects
PRIVATIZATION OF DUBAI UTILITY SECTOR: LEGAL FRAMEWORK (3/3)
DEWA FACTS and FIGURES (1/5)
Formed on 1st January 1992 by a decree to take over and merge the Dubai Electric Company and the Dubai Water Department (both initially established in 1959)
About 7,700 employees
Installed capacity 7,465 MW and 330 MIGD at end 2009
Stations MIGD MW
Jebel Ali Power and Desalination Station "D" 35 1,027 Jebel Ali Power and Desalination Station "E" 25 589 Jebel Ali Power and Desalination Station "G" 60 718
Jebel Ali R.O Desalination Plant 25 -
Aweer Power Station "H" - Ph l - 607
Aweer Power Station "H" - Ph ll - 409
Aweer Power Station "H" - Ph lll - 818
Jebel Ali Power and Desalination Station "K" 60 831 Jebel Ali Power and Desalination Station "L" - Ph I 70 861 Jebel Ali Power and Desalination Station "L" - Ph ll 55 1,137
Total 330 6,997
2008 2009
** Installed Capacity MW 6,676* 6,997
Gas Turbines MW 5,191 5,366
Steam Turbines MW 1,485 1,631
* Includes Partly Commissioned Station "L" Ph II & "H" Phase III Plants
Electricity
** Excluding 150 M W gas turbines at Satwa P o wer Statio n "C" and 14.70 M W at Hatta P o wer Statio n which are kept as emergency standby
Power & Desalination Plants Installed Capacity For the Year 2009
- Additional 226 MW in “L” Ph II - Additional 234 MW
commissioned in Q1 2101 as a new power unit at “M” Station - additional capacities at “M”
Station will be added in H2 2011 ultimately totaling in excess of 2,000 MW & 140 MIGD (under construction by Doosan – PCOD originally scheduled in H2 2010) - DEWA plans to reach 10,000 MW of installed capacity in 2012
9,660MW
DEWA FACTS and FIGURES (2/5)
Ibn Battua Mall
Jebel Ali Stations
DEWA FACTS and FIGURES (3/5)
Burj Al Arab
Safa Park
Dubai Dragon Mart
Aweer
Power
Stations
DEWA POWER STATISTICS (4/5)
DEWA WATER STATISTICS (5/5)
DEWA SLAB TARIFFS
Introduced in March 2008 as a measure to rationalize the use of electricity and water
Slab tariff Slab tariff
G 0-2,000 20 fils / kWh G 0-10,000 20 fils / kWh
Y 2,001-4,000 24 fils / kWh Y 10,001 & Above 33 fils / kWh O 4,001-6,000 28 fils / kWh
R 6,001 & Above 33 fils / kWh Electricity
Consumption/ month Consumption/ month
Residential / Commercial Industrial
Slab tariff Slab tariff
G 0-6,000 3 fils / Gallon G 0-10,000 3 fils / Gallon
Y 6,001-12,000 3.5 fils / Gallon Y 10,001-20,000 3.5 fils / Gallon O 12,001 & above 4 fils / Gallon O 20,001 & above 4 fils / Gallon
Residential Industrial & Commercial
Consumption/ month Consumption/ month
Water
ADWEA Electricity Tariff
Customer Category Unit Costs UAE Nationals-Domestic 5 Fils per KWh Non-UAE Nationals-Domestic 15 Fils per KWh Industrial/Commercial 15 Fils per KWh Governmental & Schools 15 Fils per KWh
Farms 3 Fils per KWh
ADWEA Water Tariff
Customer Category Unit Costs
Non-UAE Nationals-Domestic 10 Dhs per '000 IG Industrial/Commercial 10 Dhs per '000 IG Tank Distribution 5 Dhs per '000 IG Residence without meters 50 Dhs monthly
Decision on 8 December 2010: 15% increase across the board effective 1st January 2011
1st EPC bid submitted in H2 2008 (Hassyan 1)
3 failed attempts in total by end 2009 as DEWA rejected the offers due to high prices
3 EPC Consortia:
o Alstom & Iberdrola ($1.8bn) i.e. 1.2 MUSD/MW vs. S2 at 0.9 MUSD/MW (S3 0.7 MUSD/MW on average) o Doosan ($2bn)
o Saipem ($2.6bn)
Delay in Hassyan due (i) to slow growth in Dubai’s demand for power c. 5 to 6% p.a.
(2009-2010) vs. initial growth of 15% p.a. for the previous years and (ii) capex to be allocated in the wake of the global economical downturn
Hassyan I(W)PP expected schedule:
o RFP in Q1 2011
o Commissioning Q3 2014 (3 years behind Hassyan 1 initial schedule)
o Participation open for National and Foreign companies
o Land + fuel provided by DEWA (Dolphin Gas)
THE HASSYAN SAGA: 1,500 MW & 120 MIGD(* 두바이 최초 IWPP 취소)
Establishing the regulatory framework
Establishing DEWA as credible Partner and Offtaker
Establishing a credible schedule and committing to the schedule
Credit worthiness of DEWA (Ba2 by Moody’s; stable April 2010) + $1 bn bond (5-year notes at 8.5%) successfully issued in April 2010
Dubai Government Guarantees
