Bahrain's Electricity and Water Authority (EWA) will tomorrow (February 23) conduct a three-month-long auction of Sitra Power and Water Station site in collaboration with Mazad, an auction supervisory company specialising in the sale of corporate assets and also a unit of the kingdom's sovereign wealth fund - Bahrain Mumtalakat Holding Company. 

 

The site is a large facility and includes a number of structures and specialised equipment, including: six desalination distillers (with a 25 million gallons per day processing capacity), six steam boilers, four 25 MW capacity steam turbines with generators, a 25 MW gas reductions and pumps of various sizes as well as a number of transformers, switches and electrical cables. 

 

Confirming the sale and dismantling of the station site, EWA said the services of the Sitra plant had been suspended in February 2021 on completion of 40 years of production and remained unutilized. 

 

Over the four decades when it was in operation, a number of stations with increased capacity were founded, it added.

 

According to EWA, the station began operations in 1975, with its first phase producing 100 MW of electricity and 5 million gallons of distilled water per day. In 1984, site capacity was increased by 25 MW of electricity and 5 million gallons of distilled water. 

 

In 1985, the station’s capacity was increased once again, with three distillers installed which increased the plant’s daily production by 15 million gallons. This resulted in a peak production capacity of 125 MW of electricity and an average of 25 million gallons of desalinated water per day, it added.

 

On tomorrow's programme, EWA said the bidding will begin with a starting price of BD10.2 million ($26.8 million) and during the process the utility developer will ably assisted by Arabian Auctions, the Bahrain subsidiary of Emirates Auctions. The sale process will run for the next three months until May 23.

 

According to EWA, the winner at the digital auction will be responsible for dismantling all the station's equipment, including the turbines, and gas reductions. 

 

The buyer will also have to commit to removing the structures and foundations of all production units and providing the necessary tools and machinery needed to successfully execute the project, it stated.

 

In keeping with EWA’s wish to cultivate national infrastructure projects, the sale will contribute towards improving the quality and efficiency of government services through the foundation and development of new companies and the introduction of innovative solutions to enhance its services. 

 

EWA said through this project it hopes to improve the quality, efficiency and effectiveness of government services and enable access to a larger base of investors supported by digital advantages including flexibility, integrity and simplicity. 

 

The partnership also reflects Mazad’s position as a leading company which oversees the organisation of public and online auctions in the kingdom, it added. 

 

In keeping with with Mumtalakat’s strategy, Mazad said it continues to diversify its assets by partnering with ministries and government entities with a view to developing the local economy and fulfil the kingdom’s sustainability goals. 

 

Lauding the move, CEO Talal Al Araifi said: "Online auctions maintain transparency and fairness and create a competitive environment amongst investors as well as reaching a larger number of serious and flexible buyers."

 

"At Mazad, we continue to work towards diversifying our assets through various auctions and through collaboration with ministries, government entities and institutions in Bahrain and abroad. In line with Mumtalakat’s strategy we are committed to the helping the kingdom realise its national goals and assist in the establishment of rules in order to achieve a sustainable national economy," he added.-TradeArabia News Service