Utico announced as preferred bidder for Hassyan IWP

Utico submitted a world record tariff of $0.277 per cubic metre in August for the retendered Hassyan independent water project (IWP) in Dubai

State utility Dubai Electricity & Water Authority (Dewa) has announced it has selected Utico as the preferred bidder for the 120 million imperial gallons a day (MIGD) Hassyan independent water project (IWP) in Dubai.

The project attracted a world record tariff of $0.277 per cubic metre.

Energy & Utilities had previously reported that Utico had been selected for the scheme.

Energy & Utilities reported in September that the two bidding groups for the planned Hassyan IWP had given presentations to the client Dubai Electricity & Water Authority (Dewa) following the submission of bids for the retendered Hassyan IWP project on the last day of August.

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.