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ACWA Power submits lowest tariff for major Dubai desalination plant

ACWA Power has submitted the lowest water levelized tariff of $0.389 per cubic meter for the Hassyan Sea Water Reverse Osmosis (SWRO) Plant in Dubai.

The company submitted a Base Proposal of 120 Million Gallons per Day (MIGD) $0.365 per cubic meter for the Alternative Proposal of 180 MIGD for the plant.

The project is the first Independent Water Producer model (IWP) project by Dubai Electricity and Water Authority (DEWA).

DEWA announced that it had received two bids for the project. It has commenced the evaluation of the current bids received and aims to select the Preferred Bidder during Q2 2023.

Dubai’s main utility has adopted the IWP procurement model for the Hassyan desalination plant following the success of the Independent Power Producer (IPP) model at the Mohammed bin Rashid Al Maktoum Solar Park projects.

The 120 MIGD IWP Project is comprised of two blocks of 60 MIGD each, located within the Hassyan area on the Arabian Gulf coast in Dubai, approximately 55 km to the south-west of the Dubai Creek.

The Project will be commissioned in phases, with 60 MIGD in October 2025, and the full 120 MIGD in April 2026, to meet future potable water requirements for the Emirate of Dubai.

DEWA commenced the procurement process by issuing an Expression of Interest (EOI) on 11 August 2022 followed by issuing the Request for Qualification (RFQ) to twenty nine (29) interested bidders on 17 October 2022.

Following a rigorous qualification process, DEWA prequalified six international bidders to whom the Request for Proposal (RFP) was issued on 9 December 2022.