Dewa opens utilities sector to private firms

0
464
Spread the love

Dubai Electricity and Water Authority (Dewa) have amended Decree No 1 of 1992 to facilitate private players to participate in power generation and water desalination. According to Dewa, the amendment was to allow for the development of independent water and power plants [IWPPs] in the Emirate of Dubai as part of the IWPP programme. The Dewa Decree Amendment, in effect, will suspend Dewa’s exclusive right to generate electricity and produce/treat water. Further to the amendment of Decree No 1 of 1992, Dewa has created a regulatory law, the Dewa Decree Amendment, Law No (6) 2011 (the Enabling Law), to monitor the participation of the private sector in electricity and water production. The new law specifies standards and regulations in electricity generation and water production for both public and private entities. The amendment will allow private players to develop independent power and water projects on a limited recourse basis on its own or in collaboration with third parties. However, Dewa will remain the sole buyer of electricity and water from the producers. Korea Electric Power Corporation and Abu Dhabi National Energy, Japan’s Mitsui, and France’s GDF/Suez are some of the front runners for bidding the project. The project’s contract is expected to be awarded by the end of this year to the pre-qualified bidders. Dewa has authorized HSBC in advising and consulting the $1.5 billion (Dh5.5 billion) private investment project in water and electricity production in Dubai. Initial funding is expected from banks and Dewa will work with bidders to secure financing.

Source: Gulf News

Facebook Comments