The Federal Electricity & Water Authority (FEWA) and a consortium consisting of ACWA Power and MDC Power Holding Company has entered into a water purchase agreement for a desalination plant in Umm Al Quwain.
Under the terms of the agreement, FEWA will hold 20 percent of the stake, while ACWA Power and Mubadala will each own 40 percent.
The government of Umm Al Quwain will join as a partner in the project and will own a stake at a later date, a statement said.
Sheikh Rashid bin Saud Al Mualla, Crown Prince of Umm Al Quwain, said: “The crucial and strategic project in Umm Al Quwain is considered an important milestone in the series of development projects in the UAE as it enhances the partnership between the public and private sectors."
Suhail Mohamed Al Mazrouei, UAE Minister of Energy & Industry and chairman of FEWA, said: “This project is FEWA’s first asset in partnership with the private sector. Its implementation will reinforce UAE’s Water Security Strategy 2036 as well as bolster its core programmes."
The plant is set to supply 150 million imperial gallons per day to the Northern Emirates, he added.
Once commissioned, the Umm Al Quwain plant will be the largest desalination project in the Northern Emirates.
Construction is expected to commence in the second half of 2019, with initial water production scheduled in 2021.For all the latest energy and oil 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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