DEWA Signs Agreements for Hassyan Desalination Project Phase 2 – Newsy Today

Partnership Structure and Financial Terms for Hassyan Phase Two

The agreements were signed by Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Water and Electricity Authority, and Mohammad Abunayyan, founder and chairman of ACWA Power, alongside officials from both sides. Under the shareholding terms, the utility will hold a 60% stake in the plant, while ACWA Power will own the remaining 40%.

The project developer will handle development, financing, construction, and operation of the desalination facility. According to the disclosures, the financial impact of the 30-year water purchase agreement is expected to begin reflecting in 2030 following the successful completion of the project.

Did You Know? The second phase of the Hassyan desalination project builds upon the first phase, which was developed with a production capacity of 180 million gallons of desalinated water per day at an investment cost of 3.357 billion dirhams as the authority’s first independent water producer model.

The second phase will add a daily production capacity of roughly 60 million gallons, equivalent to about 272,000 cubic meters per day. Once both phases are fully completed, Dubai’s total water production capacity is expected to reach roughly 735 million gallons per day by 2029.

Al Tayer noted that adding 60 million gallons daily will establish the Hassyan complex as the largest seawater desalination site in the world operating on reverse osmosis technology, bringing the location’s total output to 240 million gallons per day. The expansion aligns with the UAE Water Security Strategy 2036 and the Dubai Clean Energy Strategy 2050 to curb emissions and support net-zero targets by 2050.

What is the total value of the agreements signed for the Hassyan project?

The agreements for the second phase of the Hassyan seawater desalination project are valued at 1.76 مليار درهم, which is approximately 478 million US dollars or 1.794 billion Saudi riyals.

What are the ownership percentages for the project partners?

Dubai Water and Electricity Authority holds a 60% ownership stake in the plant, while ACWA Power holds the remaining 40% share.

When is the financial impact of the project expected to begin?

According to corporate disclosures, the financial impact of the 30-year agreement is expected to start reflecting in the year 2030 after the project is successfully completed.…Read more by Chief Editor