Dubai's state utility said on Monday that it has awarded a AED246m ($66.9m) contract for a water reservoir project.
The Lusaily reservoir, which will have a storage capacity of 120 million gallons of desalinated water, will expand Dubai's total capacity to 723 million gallons, Dubai Electricity and Water Authority (DEWA) said in a statement.
It said the award of the contract was part of DEWA's strategic plan to "to secure adequate reserves of water storage for the emirate of Dubai".
Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said: "This project is part of DEWA's strategy and efforts to support and enhance water transmission networks and increase quantities of water flow to meet the rapid growth and demand for water all over the emirate.
"The project includes constructing, testing and commissioning two reinforced concrete reservoirs with capacity of 60 million gallons each and connecting them to pipelines and the existing reservoir," added Al Tayer.
The project is expected to be completed within 20 months, Al Tayer said without saying who had been awarded the contract.
Last year, risk consultants Maplecroft said the oil and gas-rich states Bahrain, Qatar, Kuwait and Saudi Arabia were reportedly at “extreme risk” of interruption to their water supply, topping a list of 186 nations.
A fresh flow of GCC construction contractor awards for new power and water projects are on the grid and expected to be worth $32.4bn in 2013, according to new research by Ventures Middle East.
According to Venture's report published on Sunday, most of the power and water project activity for 2013 is expected in Saudi Arabia, which will see $17bn worth of new contracts awarded.
The Gulf kingdom will be followed by the UAE and Kuwait, which are both expected to sign off on brand new contracts totaling $4.2bn each.