Dewa signs new Dh1bn contracts

Dubai Electricity and Water Authority (Dewa) said on Wednesday that it had signed five new contracts for power and water projects worth nearly Dh1 billion to support its infrastructure and boost the efficiency of grids and networks to meet growing demand for its services.

The deals were signed on the second day of the 13th Water, Energy, & Environment Exhibition 2011 (Wetex).

After signing the contracts, Saeed Mohammed Al Tayer, MD and CEO of Dewa, stressed the importance of executing projects according to contractual time schedules so that they can be duly put into service. He also pledged that Dewa will provide all possible facilities to contractors to ensure that these projects will be properly executed in compliance with environmental standards, on which it places higher priorities.

The first contract was awarded to M/s Pratibha Industries Ltd to construct Al Ghafat Reservoirs Phase 1 & 2 with capacity of 120 million imperial gallons (MIG). The project is expected to cost Dh285 million.

The second contract was signed with M/s Apina of Spain, to set up and construct an inlet air chilling for Gas Turbines at “L” Station, Phase I at Jebel Ali. After completion of this project, Dewa will generate additional power of approximate 108 MW from 3 Gas Turbines from “L” Station at peak summer season and it will improve efficiency of Gas turbines.

The third Dh100 million contract was to lay 132-KV cable at total length of 230 km. The contractor of the project is M/s Emirates Electrical Engineering LLC. The fourth contract was signed with M/s Siemens. It includes supply, installation, testing, commissioning of five Nos. series reactor stations at generating stations with 400 KV OHL, at a cost up to Dh372m.The fifth contract was also signed with M/s Siemens to supply, install, test and commission SCADA/EMS/DTS system for transmission control centres. The estimated cost is Dh97 million.

Al Tayer pointed out that Dewa assumes its responsibilities in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and prime Minister of UAE and Ruler of Dubai, and in compliance with Dewa’s strategy, which is part of Dubai’s strategy aiming to provide reliable infrastructure capable of meeting all the requirements of electricity and water necessary for the march towards development. These directives are being executed according to a systematic approach to meet the growth of demand for Dewa’s services. “We are here today to sign 5 contracts for new big electricity and water projects at a total cost up to one billion Dirhams,” Al Tayer further added.

Dubai to get 24% of its power from nuclear, clean coal by 2030

Dubai plans to get almost a quarter of its power from nuclear and clean coal by 2030, the head of Dubai Electricity and Water Authority (Dewa) said.

"By 2030, 12 per cent of our power will come from nuclear, either through importing from our neighbours or by building our own plant, and another 12 per cent from clean coal," Saeed Mohammad Al Tayer said on Wednesday in Dubai. A further five per cent will come from renewable energy, he said.

Dubai aims to build at least 2,000 megawatts of reactors by 2030, Al Tayer said. Dubai Electricity, the state-owned utility, will have 9,800 megawatts of capacity by next year, he said.

The Dubai government said in June it aimed to diversify power-generation sources and improve efficiency to ensure an adequate energy supply during 2030.

Fitch withdraws rating

Fitch Ratings said on Wednesday that it is withdrawing Dewa ratings in the next two weeks due to lack of information. Dewa’s current ratings are: Long-term Issuer Default Rating (IDR) at 'BBB-'; Outlook Negative, Short-term IDR 'F3', senior unsecured rating 'BBB-', notes issued under the $3bn GMTN Programme rated 'BBB-' and Dewa Funding Limited’s Dh3.2bn Sukuk rated 'BBB-'.

“The withdrawal is due to the lack of information. Fitch’s assessment of Dewa’s creditworthiness has historically been a reflection of the agency's view on the creditworthiness of the sovereign, as a result of strong operational, legal and strategic linkages,” it said.

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