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Dewa to Tender Dh22b Plant in Sept
DUBAI - Dubai Electricity and Water Authority will launch in September this year a tender for a 1,500 megawatt power project with an estimated cost of Dh22 billion, the government owned utility company said on Wednesday.
- PUBLISHED: Fri 10 Apr 2009, 12:30 AM UPDATED: Thu 5 Sept 2024, 12:02 PM
The utility, also known as Dewa, expects to award the contract in the first quarter of 2010.
Dewa closed a $2.2 billion Ijara, or Islamic lease financing facility, on Tuesday to refinance an existing debt for the same amount.
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Saeed Al Tayer, Managing Director and CEO of the company, said the syndication of the Ijara facility with the “keen and timely” participation of 18 banks was “a testimony to Dewa's reputation of being one of the advanced utilities in the region with a proven track record of good operational and financial performance.”
Dewa also recently received Moody's endorsement of its creditable rating, he said. “It is a resounding vote of confidence in the innate strength and enduring prospects of the Emirate of Dubai. Our strategy is shaped by and aligned to the Dubai Strategic Plan, which reflects the vision of the Emirate's leadership,” he said.
Dewa, which expects to boost power output capacity by nine per cent to 7,287MW by end of this year, said ongoing work on all its major projects was making headway.
The new plant that will be tendered is part of Dewa's Dh72.5 billion five-year investment programme launched in 2007 to boost power and water output capacity. On the completion of the new plant, the company will be able to generate 9,000 megawatts per day.
Dewa currently has a power output capacity of 6,676 MW while the peak load is 5,287MW and a surplus of 1389 MW, which exceeds 26 per cent of electricity required during peak demand.
The production capacity of desalinated water will reach 333 million imperial gallons per day by the end of this year. Current highest demand is 264 MIGD, with a surplus of 14 MIGD.
In the pipeline are 27 more 132kv substations and new water transmission and distribution networks, water storage complexes and pumping stations. In 2008, Dewa commissioned 28 132kv substations and one 400kv substation.
Last month, the company announced that it had delayed a move on awarding the contract for the Dh20 billion Hassyan mega power generation facility and water desalination plant in Jebel Ali.
issacjohn@khaleejtimes.com