Deal for Northern Emirates’ largest desalination plant inked

DUBAI / WAM

The Federal Electricity and Water Authority (Fewa), a consortium consisting of Acwa Power and MDC Power Holding Company, an entity fully owned by Mubadala Investment Company, has entered into a water purchase agreement for a 150 million imperial gallon per day desalination plant in the Emirate of Umm Al Qaiwain (UAQ). The plant will utilise Seawater Reverse Osmosis technology.
Once commissioned, the Umm Al Qaiwain plant will be the largest desalination project in the Northern Emirates. The project cost is deemed as highly competitive and will utilise state of the art technology allowing it to efficiently produce water while preserving the environment.
Construction is expected to commence in the second half of 2019, with initial water production scheduled in 2021. The project is part of the UAE’s effort to optimise water production and meet the increasing demand for water in the country.
Under the terms of the agreement Fewa will hold 20 percent of the stake, while Acwa Power and Mubadala will each own 40 percent. The government of Umm Al Qaiwain will join as a partner in the project and will own a stake at a later date.
Commenting on the announcement, HH Sheikh Rashid bin Saud bin Rashid Al Mu’alla, Crown Prince of Umm Al Qaiwain and Chairman of Umm Al Qaiwain Executive Council, said, “The crucial and strategic project in Umm Al Qaiwain is considered an important milestone in the series of development projects in the UAE, as it enhances the partnership between the public and private sectors and reflects positivity on the overall national economy; the project is also strategically located between Ajman, Umm Al Qaiwain and Ras Al Khaimah”.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry and Chairman of Fewa, said, “This project is Fewa’s first asset in partnership with the private sector. Its implementation will reinforce UAE’s Water Security Strategy 2036 as well as bolster its core programmes. The plant is set to supply 150 million imperial gallons per day to the Northern Emirates and will prompt the private sector to further invest in those areas.”