Monday, Jul 19, 2010
Gulf News
First venture of state-owned utility firm as independent provider
Dewa appoints HSBC as financial adviser to Hassyan project
Dubai The Dubai Electricity and Water Authority (Dewa) yesterday appointed HSBC as financial adviser for its planned Independent Water and Power Project (IWPP) a 1,500 megawatt power and 120 million imperial gallon per day water plant to be located in Hassyan.
The IWPP programme is part of Dewa’s strategic objectives of being a world class utility provider; encouraging private participation in Dubai’s energy sector and building a unique relationship and partnership with it; adopting the best practices available internationally in the energy business.
A consortium of HSBC, as the financial consultant, alongside Clifford Chance as legal consultant, and Mott MacDonald as technical consultant, will advise Dewa on the key aspects of implementing this debut IWPP with the private sector.
“The IWPP partnership structure has been very successfully employed across the GCC, and represents a sound and timely solution to meet the growing demand for key infrastructure in Dubai. HSBC has acted as financial adviser to many of the GCC countries on similar projects with great success and we look forward to working with Dewa on this, and future projects,” said Jonathan Robinson, HSBC’s head of project finance for the Middle East and North Africa.
The new IWPP project aims to meet the growing demand for power and water in Dubai and marks the first time Dewa is considering employing an IWPP structure, where the plant will be built, owned and operated in partnership with the private sector. Future projects are expected to follow and will utilise the same structure.
Dewa, one of the leading integrated utilities in the GCC region, has a long-standing history as a safe, reliable and cost-effective utility provider in Dubai.
Best service
The IWPP programme is expected to enhance Dewa’s ability to continue providing best-in-class services while meeting the growing demand from a large customer base in Dubai.
In the past, Dewa has built, owned and operated power and water projects itself. An IWPP will introduce the private sector into the provision of long term essential public infrastructure, leveraging capital, technical solutions for the new plant, international operating experience and other industry best practices.
According a recent Middle East Economic Digest forecast, more than $40 billion (Dh146 billion) will be required in the power generation sector in the Middle East in the next four years.
By Babu Das Augustine?Deputy Business Editor
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