Dubai invites firms to bid for Hassyan 2 desalination advisory mandate

Dubai Electricity & Water Authority (Dewa) has invited consultancy firms to submit proposals for the advisory services contract for the second phase of its Hassyan desalination complex

Dubai Electricity & Water Authority (Dewa) has invited consultancy firms to submit proposals for the advisory services contract for the second phase of its Hassyan desalination complex.

Consultancy firms have until 19 July to submit proposals for the advisory role on the Hassyan 2 independent water producer (IWP) project, which is planned to have a capacity of 60 million imperial gallons a day (MIGD).

In March 2021, Dewa signed the water purchase agreement (WPA) and shareholder agreement for the 120 MIGD Hassyan 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. According to sources close to the project, the project has not yet reached financial close.

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 2020 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.