Dewa deals during June exceed Dh2bn
Dubai’s electricity utility picked up pace in June as it moves to expand its power network, awarding several contracts valued at over Dh2 billion during the month.
As the emirate grows, so does its need for more electricity. There was a 4 per cent increase in power demand last year compared with 2015, and that growth is not expected to slow.
In response, Dubai Electricity and Water Authority (Dewa) has set aside Dh65bn towards the emirate’s energy sector over the next five years.
“We are moving ahead with our development projects to provide the necessary electricity and water resources to meet the growing needs of the emirate,” said Saeed Al Tayer, the Dewa managing director and chief executive.
In the past month the utility has awarded contracts for three projects with a combined value of more than Dh2bn. Dewa announced yesterday that it had selected an unnamed company for a Dh226.5 million construction contract for its distribution division at Al Rawaiyah.
The utility said that the work would include a five-floor office building with a basement, a multistorey car park, mosque and imam accommodation. In addition, the development will provide stores, field offices and staff accommodation.
Last month, the utility signed a 12-year operating plant service agreement with Siemens. The Dh1.7bn contract sets up the German company as maintenance provider for the second phase of the K-station at Jebel Ali, as well as the third phase of the H-station at the Al Aweer power station.
Dewa also tapped France’s EDF in a Dh58m consultancy contract for the pumped storage hydropower station at Hatta dam.
EDF will design and carry out studies including deepwater tunnel designs as well as mapping out the engineering, procurement and construction tender.
The project will have a total capacity of 250 megawatts, with the plant expected to be completed at a cost of Dh1.92bn.
EDF chief executive Jean-Bernard Levy said that diversification was a key objective. “Just having fossil-based electricity systems is the past. The new view is a diversified mix,” he said.