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Dubai to spend $1.9bn on power sector

3 February 2005 – Dubai Electricity and Water Authority (DEWA) will sign contracts worth Dh7bn ($1.9bn) this year as part of its projected Dh20 billion investment to expand capacity by 2010, said its top official.

The new investment will increase DEWA’s power generation capacity to 9800 MW from the current 3833, and desalinated water capacity to 110 million gallons per day (gpd) from the current level of 61.48 million.

Six international contractors and consortia have been shortlisted for the second phase of the L Station. “We are currently evaluating their bids. By May or June we expect to announce the results,” said Saeed Mohammad Al Tayer, managing director and chief executive of DEWA.

“Our current year’s expenditure also includes other projects, consultancy fees and related development expenditure.” He signed three contracts yesterday with a combined value of Dh1.29n for capacity expansion projects. The first contract, valued at Dh801m, is for the construction, completion and commissioning of Phase II of the Aweer Power station (H Station) to produce an additional 400 MW of power, which will bring the total capacity to 1000 MW.

The second contract, valued at Dh254m, involves the construction, completion and commissioning of six substations of 132/11 kilovolts for new localities in Dubai. The third contract involves the construction of three substations and the laying of cables at a cost of Dh241m. “In 40 years, we have invested Dh20bn” to install the power and desalinated water production capacity.

“In 2004, power consumption grew by about 14 per cent compared to the previous year. We expect this to grow at an annual 15 to 18 per cent until 2012. “Our Dh20bn investment over the next five years is planned to cover all future power generation and water consumption needs until 2012,” Al Tayer added.

He said the Jebel Ali Power Station will not be shifted despite heavy construction and planned developments taking place in that area. DEWA also plans to join the national grid shortly, once the project is completed. Following the completion of a national power grid, all six GCC countries will form a single Gulf-wide grid. Implementation of the national grid is underway.