Dewa signs water purchase agreement for Hassyan IWP
31 Mar 2021
Dubai Electricity & Water Authority (Dewa) has signed the water purchase agreement (WPA) and shareholder agreement for the Hassyan independent water producer (IWP) project, Dubai’s first IWP project
Dubai Electricity & Water Authority (Dewa) has signed the water purchase agreement (WPA) and shareholder agreement for the Hassyan independent water producer (IWP) project, Dubai’s first IWP project.
Dewa signed the agreements for the 120 million imperial gallons a day (MIGD) reverse osmosis (RO) plant with a consortium led by the local Utico. The project is expected to cost $410m, and is due to be completed by March 2024.
The project achieved a world record low tariff for the lowest levelised cost of energy (LCOE), with a tariff of $0.77 per cubic metre.
Energy & Utilities reported in November last year that Utico was the preferred bidder for the Hassyan IWP project.
Utico saw off competition from Saudi Arabia’s Acwa Power for the Hassyan desalination project. Both groups had initially submitted bids for the original tender in February last year before Dewa retendered the IWP in May. The Utico and Acwa Power consortiums were once again the sole bidders for the planned desalination plant when proposals were submitted in August.
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.
Synergy Consulting provided financial advisory and legal advisory services to the Utico consortium, with Bracewell providing legal advisory services.
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