National Central Cooling Company (Tabreed) has informed Dubai Financial Market (DFM) that it has been selected as the preferred bidder for the grant of long-term district cooling concession by Telangana State Industrial Infrastructure Corporation (TSIIC) for its Hyderabad Pharma City master plan.
Phase 1 of the project will be the construction of district cooling facilities of 2,500 refrigeration ton (RT), with an approximate project cost of AED36.2 million ($9.85 million), with future expansion to be made in phases in keeping with the increase in cooling demand. The total concession load is expected to be 125,000 RT.
The estimated project cost is to be financed 75 percent by local financing and 25 percent as equity funding, which will be paid in line with construction milestones. Additional cooling infrastructure in the future will need new investment.
The company said that the assets to be developed will support Tabreed’s growth plans in India, and added: “We do not expect this transaction will materially impact Tabreed’s existing operations or the rights of its shareholders”.
The agreement is expected to be signed by the fourth quarter of 2023 and construction work will start soon after that.
Established in 1998 when its first district cooling plant was commissioned in Sweihan, Abu Dhabi, Tabreed has 86 plants today across the GCC.
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