DEWA invites IWPP bidders
Dubai authority looking for private investment
The Dubai Electricity and Water Authority (DEWA) has posted a notice on its website inviting bidders for a consultancy contract to manage the launch of Dubai’s first independent water and power project (IWPP), signaling the first steps towards private investment in the emirate’s power and water sector.
Unlike Abu Dhabi and other countries such as Saudi Arabia and Oman, Dubai has not previously looked to enter into IWPP agreements.
Philipp Lotter, the Middle East vice-president for corporate finance at the ratings agency Moody’s Investors Service, told The National: “It doesn’t come as a big surprise. I think a lot of regions here – Abu Dhabi, Saudi, Oman – are moving in the direction of IWPPs, and I think it only makes sense, given the investment requirement in Dubai, for DEWA to do the same on a selective basis.”
Last year DEWA chief executive Saeed al Tayer revealed the utility had looked into IWPPs but had rejected the idea, claiming it was sufficiently efficient and reliable on its own.