FEWA And Mubadala - ACWA Power Consortium Ink Agreements For Desalination Plant In Umm Al Quwain

IWP Plant Expected to Produce 150 Million Imperial Gallons per day

Under the directives of His Highness Sheikh Khalifa bin Zayed AI Nahyan, President of the United Arab Emirates (UAE), and His Highness Sheikh Mohamed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and in fulfillment of the UAE Water Security Strategy 2036 - His Highness Sheikh Saud bin Rashid Al Mualla, Supreme Council Member and Ruler of Umm Al Quwain, harnessed the full potential of the emirate to implement the project in support of the water security strategy, which will accelerate the sustainable development of the UAE.

The Federal Electricity & Water Authority (FEWA) and a consortium consisting of ACWA Power, a global leader in water desalination and power generation, and MDC Power Holding Company LLC, an entity fully owned by Mubadala Investment Company PJSC (Mubadala), has entered into a water purchase agreement for a 150 million imperial gallon per day desalination plant in the Emirate of Umm Al Quwain. The plant will utilise Seawater Reverse Osmosis technology.

Under the terms of the agreement FEWA will hold 20 percent of the stake, while ACWA Power and Mubadala will each own 40 percent. The government of Umm Al Quwain will join as a partner in the project and will own a stake at a later date.

His Highness Sheikh Rashid bin Saud Al Mualla, Crown Prince of the Emirate of Umm Al Quwain, stated: “The crucial and strategic project in Umm Al Quwain is considered an important milestone in the series of development projects in the United Arab Emirates (UAE), as it enhances the partnership between the public and private sectors and reflects positivity on the overall national economy; the project is also strategically located between Ajman, Umm Al Quwain and Ras Al Khaimah”.

H.E. Eng. Suhail Mohamed Al Mazrouei, UAE Minister of Energy & Industry and Chairman of FEWA, said: “This project is FEWA’s first asset in partnership with the private sector. Its implementation will reinforce UAE’s Water Security Strategy 2036 as well as bolster its core programmes. The plant is set to supply 150 million imperial gallons per day to the Northern Emirates and will prompt the private sector to further invest in those areas.”

Once commissioned, the Umm Al Quwain plant will be the largest desalination project in the Northern Emirates. The project cost is deemed as highly competitive and will utilize state of the art technology allowing it to efficiently produce water while preserving the environment.

Construction is expected to commence in the second half of 2019, with initial water production scheduled in 2021. The project is part of the UAE’s effort to optimise water production and meet the increasing demand for water in the country.

Mohammad Mohammad Saleh, Director General of FEWA said: “This project will be FEWA’s first IWP project to be held in the Northern Emirates, which will help in utilizing an efficient water generation system to meet and secure the demands of both residential and agriculture sectors with competitive economical prices. FEWA will continue to achieve its ambitious vision of meeting the growing water demands in the Northern Emirates by improving and investing in its water facilities infrastructure and seeking to adapt new technologies to enhance sustainable developments.

We made the strategic decision to expand our footprint in the UAE through investing in the Umm Al Quwain SWRO and increasing our contribution to the safe and reliable delivery of water. It is an honour to have been chosen by FEWA, and we are confident that a project of this scale will go a long way in allowing FEWA to grow its capacity to a point where it can deliver a sustainable supply of water. - President & CEO, Paddy Padmanathan

Our agreement with FEWA is a strong indicator of how ACWA Power has developed a stronghold in the United Arab Emirates. Setting up the first IPP infrastructure in Umm Al Quwain, while simultaneously expanding our portfolio of projects is a major milestone for us. We look forward to capitalising on this opportunity and supporting the envisioned growth for the country. - Chief Investment Officer, Rajit Nanda

Mohammed Al Huraimel Al Shamsi, Director of Utilities at Mubadala, said: “We are pleased to partner with FEWA and ACWA Power on this strategic development. The project is in line with our Leadership’s vision of developing a sustainable more efficient water infrastructure that can cater for the growing demand whilst preserving natural resources in the country. Mubadala looks forward to continue working with our partners to bring the project to completion and support FEWA in its objective of securing water in the most efficient manner.