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FINANCIAL NEWS
Dubai backs off a USD1.3b power project
19 Apr 2012
(MENAFN) Dubai Electricity and Water Authority (DEWA) decided to postpone plans to build the USD1.3 billion Hassyan independent power and water project, Reuters reported.
The state utility firm explained the postponement decision was made due to the increased power production capacity at existing power plants in the Gulf emirate.
The Hassyan project is located 60 km south-west of Dubai, and was projected to generate of 900 megawatts of power and 720 million gallons per day of desalinated water.
The project also was Dubai’s first use of the public-private partnership (PPP) model to fund construction of a project.
Demand for cooling and fresh water has driven rapidly rising use of electricity in Dubai. The government, however, has been forced to reassess many of its projects following its standstill debt announcement in 2009.
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