DEWA names PB for Hassyan IWP
Financial close on the Hassyan independent water project (IWP) in Dubai is expected in H1 2021, after Dubai Water & Electricity Authority (DEWA) announced a Utico-led consortium as the preferred bidder this week. Joint sponsors Utico and Ghantoot's financial bid is understood to be supported by AIIB; Apicorp; Islamic Development Bank; and Siemens Bank.
The tender has concluded following a rebid between Utico and ACWA Power on 3 September 2020 which itself was a follow-up to the first bid on 27 February this year - Utico put in the lowest offer at $0.027762/m3 on the base bid and $0.026918 on the alternate bid. ACWA with GIC had initially offered $0.029892 on the base and $0.028991 on the alternate. The project is scheduled to be operational in August 2023, with the total estimated cost expected to be in line with the $700 million Rabigh-3 project and the $650 million Jubail 3A proejct.
The reverse osmosis desal project tender was revised earlier this year to an IWP concession model and upped from 120 MIGD capacity to 180 MIGD. The site has also been moved to improve sea water intake. The scheme is not backed by a government guarantee, as with its DEWA V solar project, although it does come with a 30-year water purchase agreement. The lack of a sovereign guarantee may prove a concern for international lenders – DEWA V closed on 3 September with a predominantly regional club of banks on the debt package.
