Indian, US, Japan firms race for water and power projects in the UAE

Dubai: Over 116 companies from 15 countries,including India, are in the race for acquiring two high-profile utilities projects in Ras Al Khaimah emirate in theUAE.

It is an unprecedented participation for independent waterand power projects in the Gulf country.

Companies from the US, Europe, Japan, China, India and theMiddle East are in the race for the projects, with GDFSuez,
Elf Energy, Abengoa (which has built Shams Energy), and ACWAPower among the top international bidders.

[caption id=“attachment_76564” align=“alignleft” width=“380”] Representational Image. Reuters[/caption]

The tender is expected to be wrapped up in the thirdquarter of this year. It calls for the construction of a waterdesalination plant which will deliver an output of 22 milliongallons per day and a power plant that will generate 40 MW perhour once operational.

The tender prequalification process is being managed byLatham and Watkins and features independent auditors and
finance advisors and management consultants.The projects are being developed on a 20-year guaranteedoff-take agreement by Utico, the region’s largest privateutilities company.

As per the terms of the contract, 40 per cent will befunded by the successful bidder, with the remaining 60 percent being funded by Utico.

The projects are being developed to meet the rapid growthof Ras Al Khaimah and surrounding emirates.The projects are modelled to set a precedent for the UAE,resulting in lowering or completely wiping out subsidies asprevalent along with lowering consumer pricing.

Richard Menezes, Utico’s Vice Chairman, said that energymanagement was not a target audience or government problem,
but is also an entire value chain holistic initiative thateventually only benefits the consumer paying the bill.

“Total participation is the only answer, starting from thegovernment to the consumer and everything in between,” he
said.

The solar independent power project will provide power tothe desalination plant as well as provide power to the Utico
grid.Negotiations are also underway to connect to the federalgrid, which will help Utico to increase the solar powercapacity to 120 MW over the coming years.

PTI