The investment arm of Etihad Water and Electricity has signed an agreement to construct a major desalination plant to boost water security in the utility's Northern Emirates service network.
The deal with NMDC Infra and Lantania Aguas for the Fujairah I independent water producer project, which will be located at the Port of Fujairah on the Gulf of Oman, will be developed to provide 60 million imperial gallons per day (MIGD) at a total investment value of Dh1.046 billion ($284.8 million).
EtihadWE, formerly the Federal Electricity and Water Authority, is wholly owned by the Emirates Investment Authority and is responsible for meeting the electricity and desalinated water needs in Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.
It was signed by Mohammed Al Shehhi, chief executive of EtihadWE's development and investment unit, NMDC Infra chief executive Haris Giatsos and Lantania Aguas chief executive Pedro Almagro at the Make it in the Emirates event in Abu Dhabi on Tuesday.
The Fujairah I project, which will use seawater reverse osmosis technology, is the second being procured by EtihadWE in partnership with the private sector under the public-private partnership model, following the Naqa’a plant, which has a capacity of 150 MIGD.
“This project ... reflects our commitment to developing reliable, efficient and future-ready water assets that can meet growing demand and support long-term water security for our clients," Mr Al Shehhi said.
"The Fujairah I IWP will add important investment value to EtihadWE’s portfolio, and the company is currently developing multiple seawater reverse osmosis technology projects to be announced in due course.” The UAE depends heavily on desalination to supply water for drinking and industrial purposes.
The Emirates launched the Water Security Strategy 2036 in 2017, which seeks to reduce total demand on water resources by 21 per cent, increase the reuse of treated water to 95 per cent and develop a storage capacity for more than 45 days in extreme emergencies. "Water security is a key pillar of sustainable growth," Mr Giatsos said.
Lantania NMDC Water was established following NMDC Infra’s acquisition of a 51 per cent stake in Spain's Lantania Aguas, expanding NMDC Group’s capabilities in desalination, water treatment and wastewater infrastructure.
