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Palm Water to DBOO at Jafza

Wastewater and water plants package worth US $550mn

Palm Water has been awarded a US $550 million (AED2 billion) contract by Jebel Ali Free Zone (Jafza) to design, build, own and operate (DBOO) water and wastewater plants.

This is in addition to the 30-year concession awarded to Palm Water for associated networks and collection systems that will serve the free zone’s aggressive expansion in Dubai.

And it follows similar awards with DBOO contracts underway for Nakheel on Palm Jumeirah, International City and Jumeirah Golf Estates.

Palm Water will construct three major facilities – a desalination plant with a capacity of 100,000m3 per day; a centralised sewage treatment plant with a capacity of 141,000m3 per day; and an industrial wastewater plant with a capacity of 4,000m3 per day.

Top-ranking international and local companies are expected to be involved in the design and construction of the plants.

Yousuf Kazim, chairman, Palm Water, said: “We will closely work with Jafza engineers and reputed international technology companies to provide Jafza with key water and wastewater services for its high priority developments.”

The 30-year concession awarded to Palm Water also includes associated networks and collection systems as well as related pumps and pump stations.

The water from the desalination plant will be used throughout Jafza’s labour camps, while the sewage treatment plant will serve the free zone authority’s entire development. The industrial plant will serve Jafza’s industrial and commercial clients.

The first phase of the sewage treatment plant of 35,000m3 per day capacity will be operational by January 2008.

“The first phase of the desalination plant will be completed by mid-2008. The schedule for the industrial waste treatment plant is being finalised with Jafza, and when completed, it will treat raw sewage in accordance with Jafza’s environmental rules and regulations,” said Bob Bryniak, CEO, Palm Water.

Palm Water is 95%-owned by Istithmar, the investment arm of Dubai World, and water treatment group Hyflux, which owns the minority stake.

The plant is expected to reach full capacity by the end of 2010, with the desalination plant to be operational by 2011. The scope of the contract awarded to Palm Water covers designing, supplying, constructing, owning, operating and maintaining the plant, as well as owning, operating and maintaining the pumping stations and tanks.

The desalination plant will utilise reverse osmosis, converting nearby seawater into drinking water that will meet Dubai standards.

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