GDF Suez, the largest shareholder of Bahrain’s $2.1 billion Al-Dur Independent Water and Power Producer (IWPP), and Gulf Investment Corporation (GIC), another shareholder, have completed the limited recourse financing of the project, it was announced in late July.

A syndicate of 20 international and regional commercial and Islamic banks, in addition to the Export-Import Bank of the United States, is participating in the $1.6 billion loan.
Al-Dur, the largest privately-owned industrial project in Bahrain, was awarded to GDF Suez and GIC in August of last year by Bahrain’s Ministry of Finance. Subsequently, a group of five prominent institutions entered as new shareholders in the project. The Social Insurance Organisation of Bahrain, Instrata Fund, Capital Management House, Bahrain Islamic Bank and First Energy Bank have joined GDF Suez and GIC in the project, where GDF Suez will remain the largest shareholder with a 45 per cent stake.
The project, which will produce 1,250 MW of power and 48 million imperial gallons (218,000 cu m) of desalinated water per day, is presently almost 30 per cent completed. It benefits from a 20-year power and water purchase agreement with the Electricity and Water Authority of Bahrain (EWA).
GE will supply equipment and services worth more than $500 million. The first phase (600 MW) will be completed in June 2010 and the second phase a year later. The deal with GE was signed in June.
The EPC contractor is Hyundai Heavy Industries. Degremont, a subsidiary of Suez Environment, will supply and install the RO desalination facility.

US Exim bank’s contribution
US Exim is expected to contribute $229 million to the financing once its contribution has been approved by the US Congress. The Korean Export Insurance Company provided commercial and political risk cover for part of the financing. 
The banking syndicate is led by Calyon, Mashreqbank and Standard Chartered Bank as Original MLAs.
Guy Richelle, CEO of GDF Suez Energy Middle East-Asia and Africa, commented: “The success of this major finance agreement, the first to be finalised in the Gulf this year, is strong evidence of the confidence of the banking community in the strength of the consortium and the economic development of Bahrain.”
Hisham Al-Razzuqi, CEO of GIC stated: "Achieving financial close on a project of this size, in this market, is indeed a great achievement.

Steam turbines from GE Energy
GE Energy is supplying two steam turbines and four heavy-duty Frame 9FA gas turbines, which are equipped with GE advanced emission control technologies. GE also has signed a 20-year contractual service agreement (CSA) for the project, which will support the long-term operability and performance of the turbines. The agreement also guarantees the availability of power, which is especially critical during the summer months.
The four giant gas turbines will be made in the company’s Greenville, South Carolina plant and the two steam turbines in Schenectady, New York.
GE Energy, which has more than 1,000 turbines installed throughout the Middle East providing more than 70 gigawatts, has announced more than $8 billion in power generation projects in the region over the last two years. GE’s advanced gas turbines have accumulated more than 28 million hours of commercial service worldwide since their introduction in 1987.
The Al-Dur project further expands the presence of GE’s F-class gas turbine technology for projects in the Middle East.
The private sector has already contributed to the electricity and water sector in Bahrain through the construction of Bahrain's first Independent Power Plant (IPP), Al Ezzel, and the enlargement of Al Hidd Power and Water Station.