Utico wins Dubai water reservoir contract

Local water company Utico has been awarded an $80m contract to build a 120 million imperial gallon a day (MIGD) water reservoir at Hassyan in Dubai

Local water company Utico has been awarded an $80m contract to build a 120 million imperial gallon a day (MIGD) water reservoir at Hassyan in Dubai.

The engineering, procurement and construction (EPC) contract includes the electro-mechanical and SCADA works for the reservoir contract.

Dubai Electricity & Water Authority (Dewa) tendered the water reservoir EPC contract in June last year.

Utico recently was awarded a contract by Dewa to develop Dubai’s first independent water project (IWP) at Hassyan. The reverse osmosis (RO) desalination 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 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.

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.