Water Purchase Agreement signed for USD408.3 million Desalination PPP project in UAE
Dubai Electricity and Water Authority (DEWA) has signed a 35-year Water Purchase Agreement (WPA) and the Shareholder Agreement (SHA) for the Hassyan Sea Water Reverse Osmosis (SWRO) Plant, with Emirati company Utico.
The 120 Million Imperial Gallons per Day (MIGD) project will be built using the Independent Water Producer (IWP) model. It is expected to be completed by March 2024 at a total cost of USD 408.30 million (around AED 1.5 billion).
Al Tayer, MD & CEO of DEWA, said: “This key project supports DEWA’s strategy to engage the private sector in developing innovations that enhance water supplies and improve the efficiency and quality of water services. We work to increase the production capacity of desalinated water to meet the growing demand, with the aim of reaching 750 MIGD of desalinated water, compared to the current 470 MIGD. The project also supports DEWA’s strategy to promote Sea Water Reverse Osmosis, as it consumes less energy compared to Multi-Stage Flash (MSF) plants. We aim to produce 100% of desalinated water using a mix of clean energy and waste heat by 2030".
DEWA achieved a world record for the lowest levelised water tariff of 0.277 USD per cubic meter for this project.
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