Bid & Tender


Dewa Signs Water Purchase Deal with Utico for $410mn SWRO Project

Dubai Electricity and Water Authority (Dewa) has signed a 35-year water purchase agreement (WPA) and the shareholders agreement (SHA) for the Hassyan Sea Water Reverse Osmosis (SWRO) plant, with Emirati company Utico.


The 120 million imperial gallons per day (MIGD) project will be built using the Independent Water Producer (IWP) model. It is expected to be completed by March 2024 at a total cost of $410 million.


The agreements were signed by Saeed Mohammed Al Tayer, MD and CEO of Dewa, and Ivan Richard Menezes, the managing director of Utico in the presence of the group's Chairman Rashed Mehran Al Blooshi and other senior officials.


On the deal, Al Tayer said: "This key project supports Dewa’s strategy to engage the private sector in developing innovations that enhance water supplies and improve the efficiency and quality of water services."


"We work to increase the production capacity of desalinated water to meet the growing demand, with the aim of reaching 750 MIGD of desalinated water, compared to the current 470 MIGD. The project also supports DEWA’s strategy to promote Sea Water Reverse Osmosis, as it consumes less energy compared to Multi-Stage Flash (MSF) plants," he noted.


"We aim to produce 100% of desalinated water using a mix of clean energy and waste heat by 2030," added Al Tayer.


According to him, Dewa had achieved a world record for the lowest levelised water tariff of 0.277 USD per cu m for the Haasyan project, which is its first IWP project.


"It builds on the great success the Dubai utility achieved in the Independent Power Producer (IPP) model projects at the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar park in the world. Through this model, we received the lowest global solar energy prices five consecutive times, making Dubai a global benchmark for solar energy prices," stated Al Tayer.


On the contract win, Al Blooshi said: "Utico is honoured to be chosen as partner to Dewa for its first IWP desalination plant. As a UAE company and the largest IWP developer, we are confident of delivering this development to the satisfaction of Dewa and all its stakeholders."


"We will deliver this project as the most sustainable desalination plant in the UAE with the world's lowest tariff," he added.


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