Bahrain-based First Energy Bank (FEB), the world’s first Islamic investment bank focusing exclusively on the energy sector, has acquired a 9 per cent stake in the Al Dur Independent Water and Power Production (IWPP) plant, the largest of its kind in Bahrain.  With a total investment of $50 million, FEB becomes a significant shareholder in the project.

The Al Dur project, located on the southeast coast of the kingdom and valued at $2.2 billion, will be fully operational in the summer of 2011. The plant will produce 1,234 MW of power and 48 million gallons of water when operational.
Deputy CEO and chief investment and business development officer Mohamed Ghanem commented that the Al Dur project was a prime example of the nature and scope of investment the bank was looking for. 

Gulf Investment Company (GIC) and GDF Suez were awarded the project last year.  The project is composed of a combined cycle gas turbine power plant and a reverse osmosis desalination plant.

FEB also recently invested $15 million with Mumtalakat, Bahrain’s sovereign wealth fund, to refinance three Airbus A330 aircraft for Gulf Air, Bahrain’s national carrier.  The funding came from a $140 million syndicated Ijara facility provided by FEB.

Vahan Zanoyan, CEO of FEB, said FEB was committed to further developing the energy sector and Bahrain in general.