DEWA mandates HSBC as advisor to IWPP
Dubai closer to first private investment in power and water sector.
Dubai Electricity and Water Authority (DEWA) has mandated HSBC as financial advisor for its first independent water and power project ( IWPP) the bank said Sunday.
Clifford Chance will act as legal consultant, and Mott MacDonald as technical consultant, as DEWA is seeking to attract private investment into power and water generation, HSBC said in an emailed statement.
The IWPP will be located at Hassyan, near the border with Abu Dhabi, and have the capacity to produce 1500MW and desalination capacity of 120 million imperial gallons per day, the statement said.
The IWPP model "represents a sound and timely solution to meet the growing demand for key infrastructure in Dubai" that has been well-tested across the Gulf region, said Jonathan Robinson, HSBC’s head of project finance for the Middle East and North Africa region.
DEWA in January announced its decision to invite international developers to help it build power and water plants, in a bid to free up the city state's funds for other investments. The state utility has in the past funded its spending by tapping debt markets and export credit financing.
The state utility in April sold US$1 billion of 5-year bonds, in an issue that was seen to re-open up the bond market after Dubai announced a restructuring proposal for debts at its conglomerate Dubai World, writes the Dow Jones Newswire.