PROJECTS: Dubai receives record low tariff for Hassyan desalination project

Lowest water levelised tariff of $0.277 per cubic metre received for Hassyan Sea Water Reverse Osmosis Plant

  
A tour guide walks past the filters in the Reverse Osmosis Building during tour of the Carlsbad Desalination plant in Carlsbad, California, December 14, 2015. Image used for illustrative purposes.

A tour guide walks past the filters in the Reverse Osmosis Building during tour of the Carlsbad Desalination plant in Carlsbad, California, December 14, 2015. Image used for illustrative purposes.

REUTERS/Earnie Grafton

Dubai announced on Thursday that it has received the world's lowest water levelised tariff for its Independent Water Producer (IWP) model project.

Dubai Electricity and Water Authority (DEWA) said in a statement that it received levelised tariff of $0.277 per cubic metre (m3) for its 120 Million Gallons Per Day (MIGD) Hassyan Sea Water Reverse Osmosis (SWRO) Plant after re-tendering.

The project would be commissioned in 2024, the statement said. Details about the bidders weren't disclosed.

MD and CEO Saeed Mohammed Al Tayer said the project would increase Dubai's water desalination capacity to 750 MIGD from 470 MIGD at present.

The new tariff is atleast 9.5 percent lower than the tariff achieved before the IWP was retendered.

In February 2020, Zawya Projects had reported that DEWA had received a then record low tariff of $0.306/m3 for the IWP. The low tariff was was bid by a local consortium of Utico and Ghantoot, according to a May 2020 report by Zawya Projects. The project was retendered in June 2020.

By 2030, DEWA aims to produce 100 percent of its desalinated water by a mix of clean energy and waste heat.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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