Bid & Tender


Financial Close for Hassyan IWP expected in Q1-end

The 120 million imperial gallons a day (MIGD) Hassyan independent water project (IWP) in Dubai is expected to reach financial close by the end of the first quarter of 2021.


In November, Dubai Electricity & Water Authority (Dewa) had selected Utico as the preferred bidder for the Hassyan IWP project. The project attracted a world record tariff of $0.277 per cubic metre.


According to sources close to the scheme, the special purpose vehicle (SPV) established to develop the project is expected to reach financial close for the project by the end of the first quarter.


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.


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