Dubai to invest US $5.45 billion to raise utilities’ capacity

Dewa readies plans to raise power generation capacity by one and half times by the year 2010

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By  Eudore Chand Published  February 26, 2005

Dubai Electricity and Water Authority (Dewa) is to sign contracts worth almost US $2 billion this year under a five-year plan to substantially raise water production and power generation capacities. The five-year plan projects an expenditure of US $5.45 billion to meet the rapidly growing needs of various developments in the fast expanding city. Most of its new projects are aimed to be in full operation by 2010. “In 2004, power consumption grew by about 14% compared to the previous year. We expect this to grow at an annual 15% to 18% until 2012. Our US $5.45 billion investment over the next five years is planned to cover all future power generation and water consumption needs until 2012,” said Saeed Mohammad Al Tayer, managing director and chief executive of Dewa. Accordingly, the utilities provider aims to up power generation capacity by one and a half times to 9800 MW by 2010. It currently produces some 3833 MW of electricity. The plan also projects a substantial increase in water production to 110 million gallons per day by the end of the first decade, up from the present 61.48 million gallons a day. According to top Dewa officials, six international contractors and consortia have been shortlisted for the second phase of its ‘L’ Power Station. “We are currently evaluating their bids. By May or June, we expect to announce the results,” explained Al Tayer. He recently signed three contracts worth a combined value of over US $351 million for capacity expansion projects. The first contract was valued at approximately US $218 million and is for the construction, completion and commissioning of phase II of the Aweer Power Station (H Station). Once completed, the project will produce an additional 400 MW of power, which will bring the total capacity to 1000 MW. The second contract is for just under US $70 million and involves the construction, completion and commissioning of six substations of 132/11 kV for new areas in Dubai. The third contract involves the construction of three substations and the laying of cables. It is valued at around US $65.5 million. Al Tayer said that over the past 40 years, Dewa has invested some US $5.5 billion to build up power generation and water desalination capacity to present levels. He said that the Jebel Ali Power Station will not be shifted despite heavy construction and planned developments taking place in that area. Dewa also has plans to join the national grid shortly, once the project is completed. “We will have additional capacity, so we will not need electricity. However we will be in a position to supply others in case of need or emergency. The price is being worked out,” said Dewa managing director and CEO.

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