Dubai Electricity & Water Authority, the state-run utility, will repay AED1.2bn ($330m) in loans ahead of schedule, its chief executive officer said on Tuesday.
The repayment, originally scheduled for November, will be made on March 15, Saeed Mohammed al-Tayer said in an interview in Dubai.
No further repayments are due this year and further borrowing isn’t planned, he said. “This means the financial situation is healthy,” al-Tayer said.
Dewa, as the monopoly utility is known, is expanding generation capacity to meet rising domestic demand. Capacity will increase to 9,600 megawatts from 8,700 megawatts in five months when a plant known as M Station is completed, he said.
Separately, Dubai intends to award a contract to build its first private electricity station, the gas-fired Hassyan-1 plant, he said.
There will be an announcement on that project this month, he said.
HSBC Holdings and Emirates NBD agreed to offer a commercial debt facility for as much as $200m as an incentive for companies bidding for Hassyan-1, Dewa said in September.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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