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Dewa to spend Dh1oo billion

By Karen Remo-Listana



Dubai Electricity and Water Authority (Dewa) on Wednesday signed six contracts for mega projects with a total value of Dh12 billion, marking another major infrastructure expansion drive to support Dubai’s growing economy.


The contracts – signed by Dewa Managing Director and CEO Mohammad Al Tayer and the heads of firms from South Korea, Italy, Dubai, Oman, France and Japan – highlight the expected dates of completion amid tight market conditions.


Al Tayer said the deadlines for the projects – three of which are set to be finished in 2009 and the others by 2010 – were “reasonable” and “would be extended in case the time frame is not sufficient”.


“Most of our contracts are reasonable. Before, we asked for our substations to be finished in 16 months, now we are asking for more than 20 months. For our Jebel Ali power stations, we asked for 22 months, now it’s 36 months,” he told Emirates Business.


Some of Dubai’s property developers have said the real estate boom may slow down as the emirate’s state-owned power and water utility supplier struggles to keep up with the pace of demand from residential and tourism projects.


“This is not true as there is enough electricity to power Dubai’s projects,” Al Tayer said, adding Dewa will be investing another Dh100bn to power projects in the next three years.


The first two contracts consist of a combined cycle co-generation and power generation and desalination plant with a capacity of 2,000MW gross power output and 140 million imperial gallons per day distillate water production.


The Dh6.2bn power package, the largest contract, was awarded to South Korea’s Doosan Heavy Industries and Construction Company Limited, while the desalination package was awarded to Fisia Italimpianti Spa Italy on a turnkey basis. Both packages are set to be completed in June 2010.


Dubai’s Mammut Group won the contract to build the Mushrif Reservoir Phases four through six, which will have capacity of 180 million imperial gallons. The Dh620 million project is due for completion on April 23, 2009.


Oman’s Gulf Petrochemical Services and Trading has snatched the Dh155m contract to install, test and commission the DFO pipeline from Jebel Ali Free Zone to Aweer power station, which will be due by January 2009.


A consortium of France’s Areva and South Korea’s Hyundai Heavy Industries won the Dh816m contract to supply, install, test and commission two 400/132 substations. The substations, named Barsha and Horse Race, are due to be finished by the end of December 2009.


Japan’s Mitsubishi Electric Corporation, on the other hand, will supply, install, test and commission a 400/132 substation named Technology. The Dh448m project will be finished by February 2010.


Dubai’s power and water demand is rising by an average rate of 20 per cent and 15 per cent respectively each year, according to Dewa.