Private entry into power allowed
Dubai has amended the royal decree that established Dubai Electricity and Water Authority (Dewa) in 1992, creating scope for private participation in the power generation and water production for the emirate.
According to a Dewa statement published on the Nasdaq Dubai bourse website today, the Government of Dubai has amended Decree No. 1 of 1992 establishing Dewa. “The decree has been amended in order to, inter alia, allow for the development of independent water and power plants (IWPPs) in the Emirate of Dubai as part of an IWPP programme,” the statement said.
“The nature of the IWPP programme is consistent with Dewa’s existing operations and strategy,” it added.
Following to the amendment, “DEWA may develop independent power and water projects on a limited recourse basis in conjunction with third parties or on its own. DEWA will however remain the sole offtaker of electricity and water in the Emirate of Dubai,” the statement said.
In conjunction with the amendment, an enabling law that regulates the participation of the private sector in electricity and water production in Dubai has also been passed, the statement said.
Dewa Funding - Periodic Profit Distribution
In a separate development, DEWA Funding announced its routine periodic profit distribution, amounting to Dh58.7m due on June 16, 2011, on its Dh3.2bn Trust Certificates due 2013.
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