Taqa in Dh900m push to expand recycled water business

The expansion will allow nearly 4,000 farms to benefit from the supply of recycled water

Earlier this month, Taqa completed its transaction with ADPower to create one of the largest utility companies in the Europe, Middle East and Africa region with total assets worth about Dh200bn. Courtesy Abu Dhabi Government Media OfficeShow less

Abu Dhabi National Energy Company, also known as Taqa, said that its subsidiary awarded Dh900 million worth of projects to expand the company’s recycled water distribution programme.

The two projects under the umbrella of Abu Dhabi Distribution Company (ADDC), will have a combined capacity to transmit around 85 million imperial gallons per day (MIGD) of recycled water, sufficient to irrigate more than 3.5 million palm trees, the company said.

"By implementing practical and sustainable solutions that optimise desalinated water usage and protect our precious ground water resources, we will continue to reinforce the emirate’s strategic approach to achieving water and environmental sustainability,” Saeed Mohamed Al Suwaidi, ADDC managing director, said.

The expansion will increase the use of recycled water beyond municipal landscaping to include commercial and agricultural sectors, the company said.

The move will also allow nearly 4,000 farms to benefit from the supply of recycled water, according to ADDC.

The expansion plans follow an earlier announcement in January, when the company began transmission of 4.4 MIGD of recycled water on Saadiyat Island through an existing network on Yas Island.

The new transmission infrastructure will help the company reach clients from the commercial and agriculture sectors located on the outskirts of Abu Dhabi.

The expansion will include laying out approximately 150 kilometres of pipelines in two phases, with the first 30 MIGD pipeline slated for completion by the third quarter of 2021 and the second 55 MIGD project to be completed by the fourth quarter.

Taqa said it is focused on the UAE’s national strategies for energy and water supply, "which anticipate an increase in demand and the deployment of more clean technologies and sustainable methods of service delivery,” said Omar Abdulla Alhashmi, executive director of transmission and distribution at Taqa.

"The expansion of ADDC’s recycled water distribution programme plays a key role in Taqa's transformative impact on Abu Dhabi’s utilities sector – across the value chain and for decades to come,” he added.

Earlier this month, Taqa completed its transaction with ADPower to create one of the largest utility companies in the broader Europe, Middle East and Africa region with total assets worth about Dh200bn.

As per the terms, ADPower transferred the majority of its water and electricity generation, transmission and distribution companies to Taqa in return for convertible shares in the latter.

Following the deal, Moody's Investors Service upgraded Taqa's issuer rating to Aa3 from A3 and its short term rating to P-1 from P-2. The ratings agency said the new assets have a "significant positive impact on Taqa's business and financial profiles".

Taqa also reached financial close for a 2.4 gigawatt gas-fired power plant in the emirate of Fujairah – the largest such scheme in the UAE earlier this month.

The Fujairah F3 independent power producer (IPP) project, expected to cost Dh4.2 billion, is set to power 380,000 households upon completion in the third quarter of 2022. An IPP refers to a private entity that generates power for sale to a utility or end users.