Tuesday, June 22, 2021

Sojitz Corporation acquires 20 per cent stake in Abu Dhabi’s Mirfa IWPP

9 May 2021

Dubai-based investment bank Shuaa Capital has sold a 20 per cent equity stake in the $1.5bn Mirfa independent water and power producer (IWPP) project to Japan’s Sojitz Corporation

Dubai-based investment bank Shuaa Capital has sold a 20 per cent equity stake in the $1.5bn Mirfa independent water and power producer (IWPP) project to Japan’s Sojitz Corporation.

In a statement released to the Dubai Financial Market (DFM), Shuaa Capital revealed that the sale was part of the company’s “planned exit strategy,” without revealing the value of the sale.

The Mirfa IWPP, operated by the Mirfa International Power Company (Mipco), a special purpose vehivle established to develop and run the IWPP, began commercial operation in 2017, with the electricity and water produced by the plant bought by Emirates Water & Electricity Company (Ewec) under a long-term offtake agreement. The current offtake agreement has 22 years left.

The Mirfa IWPP has a power generation capacity of 1,600MW and a water production capacity of 52.5 million imperial gallons a day (MIGD).

France’s Engie holds a 20 per cent stake in the Mirfa IWPP, with Abu Dhabi National Energy Company (Taqa) holding the remaining 60 per cent share.

The Mirfa IWPP was one of the largest IWPP contracts in the GCC when signed in 2014, when Engie and partners was awarded the contract to develop the plant. Construction work on the plant began in 2015.

Shuaa Capital was advised on the stake sale by Standard Chartered Bank and legal firm Linklaters.

Abu Dhabi is also planning to develop an independent water producer (IWP) project at Mirfa site in the Al-Dhafra region.

Energy & Utilities reported in March that developers had submitted expressions of interest (EOI) for the planned Mirfa 2 (M2) IWP.

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