Dubai:Dubai Electricity and Water Authority (DEWA) has entered into a Water Purchase Agreement and a Shareholder Agreement with Acwa, valued at AED 1.76 billion (approximately USD 478 million), for the second phase of the seawater reverse osmosis (SWRO) desalination project at the Hassyan complex in Dubai.
According to Wam, the agreements were signed by Saeed Mohammed Al Tayer, MD and CEO of DEWA, and Mohammad Abunayyan, Founder and Chairman of Acwa, in the presence of officials from both entities. The project company will oversee the development, financing, construction, and operation of the desalination plant, with DEWA holding a 60% stake and Acwa owning 40%.
The 30-year Water Purchase Agreement outlines the development of the second phase with a production capacity of approximately 60 million imperial gallons per day (MIGD) (272,000 cubic metres). This complements the 180 MIGD first phase, which involved an investment of AED 3.357 billion and was DEWA's first project based on the Independent Water Producer (IWP) model. Upon completion of both phases, Dubai's total desalinated water production capacity is expected to reach approximately 735 MIGD by 2029.
Al Tayer emphasized the importance of these agreements in enhancing Dubai's water security through sustainable sources and advanced technologies. He highlighted the project's alignment with the UAE Water Security Strategy 2036 and the Dubai Clean Energy Strategy 2050, aiming for net-zero emissions by 2050. Abunayyan reiterated the significance of water security for sustainable economic growth and the long-standing partnership with DEWA in Dubai's power and water sectors.