Bidders give presentations for Dubai’s Hassyan IWP

A world record low tariff of $0.277/cubic metre was submitted for Dubai’s first independent water producer (IWP) project following a retender

The two bidding groups for the planned Hassyan independent water project (IWP), Dubai’s first public-private partnership (PPP) desalination project, have given presentations to the client Dubai Electricity & Water Authority (Dewa).

According to sources close to the scheme, the bidders gave presentations to the client in the third week of September following the submission of bids for the retendered Hassyan IWP project on the last day of August.

Energy & Utilities reported that consortiums led by UAE-based Utico and Saudi Arabia’s Acwa Power were once again the sole bidders for the planned desalination plant.

Dewa retendered the project in May and also invited bidders to submit additional proposals for a 180 million imperial gallons a day (MIGD) desalination plant, 60MIGD greater than the original 120MIGD plant tendered. The client also changed the site of the proposed plant.

The Utico-led consortium submitted the lowest proposals for both the base 120MIGD plant and the alternative 180MIGD facility.

The prices for both bidders for both sizes were:

• Utico – 120MIGD: $cents27.762/cubic metre (cm), 180MIGD: $c26.124/cm
• Acwa Power – 120MIGD: $c29.892/cm, 180MIGD: $c28.991/cm

The Utico consortium also submitted the lowest bid in the original tender, submitting a proposal of $c30.6/cm. Acwa Power submitted a proposal of $31.8/cm in the original tender.

The lowest bid was a world record low levelised tariff for a RO (reverse osmosis) IWP project.

The project is Dubai’s first IWP, with previous desalination projects having been tendered under engineering, procurement and construction contracts.

Dewa appointed the UK’s EY as lead and financial adviser for the project, UK-based CMS as legal adviser and Canada’s WSP as technical adviser.