We have covered key developments in PPP and infrastructure across UAE and BAHARAIN in our final insight of Q2 2024. UAE has issued the detailed PPP manual and focus sectors for the first phase of ambitious PPP project pipeline for infrastructure development, which is bound to attract international investors to take part in this infrastructure growth, including through MoUs and bilateral negotiations. Baharain has also annouced investments & private sector participation in social and urban infra projects.
Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q2 2024 series.
April 2024
EMIRATES GLOBAL ALUMINIUM AND MASDAR HAVE FORMED A NEW ALLIANCE TO EXPLORE "LOW CARBON" ALUMINIUM.
To assist in the decarbonization of the aluminium industry, UAE state-owned renewables company Masdar has partnered with aluminium manufacturer Emirates Global Aluminium (EGA). EGA produces 1 in every 25 tonnes of world’s Aluminium. Together, Masdar and EGA will develop renewable energy projects that include the production and storage of green hydrogen as well as ‘potential battery storage’.
This partnership will assist in decarbonizing both EGA's current and upcoming businesses in the UAE. There also exists opportunities to operate overseas as well, where Masdar will assist EGA in utilizing renewable energy sources to power new aluminium production facilities.
REQUESTS FOR PROPOSALS ARE RELEASED BY ABU DHABI FOR A 1.5 GW SOLAR PROJECT.
A request for proposals (RFP) has been issued by Abu Dhabi’s Emirates Water and Electricity Company (EWEC) for the construction of the 1.5 GW Khazna solar photovoltaic (PV) project in the Abu Dhabi- Al Khazna area. The selected bidder will oversee the solar facility's design, funding, building, management, and upkeep. The RFP submission is due in Q3 2024. This RFP is issued to 19 developers out of 27 developers and consortia that had submitted EOI for the Khazna PV Project.
The Developers will own up to 40% of the project, while remaining majority stake will be owned by the Abu Dhabi government. Khazna Solar PV will increase EWEC's total installed solar PV capacity to 5.5 GW once it is operational. The PPA for the project is designed as an energy purchase agreement, and EWEC will only pay for the net electrical energy supplied by the plant.
EDF TEAMS AWARDED A 1.5 GW AL AJBAN SOLAR PV PROJECT IN ABU DHABI.
Emirates Water and Electricity Company (EWEC), an integrated company that plan, purchase and supply water and electricity across the UAE, awarded its 1.5-gigawatt (AC) Al Ajban Solar PV Independent Power Project to team consist of EDF, UAE energy firm Masdar and Korean Western Power (KOWEPO).
The project, which involves the DBFO of the solar facility in the Al Ajban area, 70 km northeast of Abu Dhabi, was won by the consortium over three other bidders. It is expected to cost USD 748 Mn.The consortium and EWEC have inked a power purchase agreement for the project, which is scheduled to start up in the third quarter of 2026.
It is estimated that the project will cut Abu Dhabi's carbon emissions by 2.4 Mn metric tons annually and produce enough electricity to power 160,000 families throughout the United Arab Emirates.
UAE'S FIRST OPERATIONAL VERTIPORT IS UNVEILED BY ABU DHABI INVESTMENT OFFICE, GCAA, AND ABU DHABI MOBILITY.
The first operational vertiport for vertical take-off and landing (eVTOL) aircraft in the United Arab Emirates was launched by Abu Dhabi at the DRIFTx, a global event that showcases smart, autonomous, and sustainable urban mobility across land, sea, and air. Built as per UAE’s General Civil Aviation Authority (GCAA) latest industry standards and guidelines, this temporary vertiport facility provides an insight into Abu Dhabi's plan to deliver one of the most advanced sectors globally for electric vertical take-off and landing aircraft (eVTOLs) by 2026.
The UAE’s vertiport network will mark a critical turning point in transportation innovation and it will open a wide range of business opportunities for transportation infrastructure firms, encouraging both technological innovation and economic development. ADIO engaged with experts in the advanced air mobility sector for the commercial opportunities available to develop the capital’s vertiport infrastructure network through Abu Dhabi’s public-private partnership (PPP) framework.
May 2024
THE BAHRAIN’S OFFSHORE WINDFARMS TO BE DEVELOPED BY MASDAR AND PARTNER BAPCO ENERGIES.
Masdar of United Arab Emirates (UAE) and Bahrain's Bapco Energies, an energy investment & development arm of the Kingdom of Bahrain, will explore the possibility of developing near-shore and offshore windfarms in Bahrain. The UAE energy company Masdar has agreed to create up to 2 GW of offshore wind in Bahrain, signalling the beginning of plans to develop the first offshore wind projects in Bahrain. This deal will help Bahrain to achieve its national energy strategy, which calls for a 30% reduction in emissions by 2035.
VEOLIA SECURES A USD 320 MN UAE’S CONTRACT FOR THE MOST ENERGY-EFFICIENT DESALINATION PLANT.
Veolia through its subsidiary SIDEM, secures a USD 320 Mn contract and under which it will engineer and supply key technology for the Hassyan seawater desalination plant in Dubai, UAE. Once commissioned in 2026 by Dubai Electricity and Water Authority (DEWA) and ACWA Power, the plant will be the world’s second largest desalination plant based on reverse osmosis (RO) technology, and the largest desalination plant powered by solar energy.
This reverse osmosis desalination facility can produce 818,000 cubic meters of potable water per day, enough to meet the needs of 2 Mn people. Additionally, energy required to desalinate seawater has been lowered by 35% due to Veolia's advanced reverse osmosis technology and its broad experience in crucial pre-treatment and post-treatment phases.
YELLOW DOOR ENERGY AND THE AVENUES-BAHRAIN COLLABORATE ON A SOLAR CARPORT PROJECT
In partnership with Yellow Door Energy, The Avenues-Bahrain, Bahrain's top waterfront retail and leisure destination, has revealed plans for a ground-breaking renewable energy initiative. This disruptive project includes the installation of a 3.5 MWp solar carport system, featuring cutting-edge bifacial solar panels in the outdoor parking facility.
This project is expected to be completed in Q4 2024 and involves installation of more than 6,000 bifacial solar panels, covering 23,500 square meters and providing shade for 1,025 parking spaces. Upon completion, the project is expected to generate more than 5.8 Mn kilowatt-hours of renewable energy per year and drastically reduce carbon emissions by 4,000 metric tons.
June 2024
CAMPUS EXPANSION WORTH USD45 MN IS ANNOUNCED BY RCSI MEDICAL UNIVERSITY.
The Royal College of Surgeons in Ireland – Medical University of Bahrain expanding its campus on its 20th anniversary. It has given Nass Corporation USD45 Mn project which consists of a brand-new, 7,912 square meter academic building with teaching facilities, research labs, a library, social spaces, and an event hall. Additionally, it has sustainability-focused features including solar panels, LED lighting, water conservation systems, bike racks and EV charging stations, and native plants in green areas to reduce heat.
BUSAITEEN LINK PACKAGE 3 PROJECT (USD 98 MN) IS AWARDED TO NASS-NASSIR HAZZA JV.
The Bahrain Ministry of Works and the Nass-Nassir Hazza Joint Venture finalized a BD37.23 Mn (USD98 Mn) contract. Project include Busaiteen Link Package 3: phases two and three of the Muharraq Ring Roads (from junction 1 to junction 4).
In addition, the Nass-Nassir Hazza Joint Venture will construct an 8.3-km dual four-lane main highway, a 2.4-kilomeer dual carriageway, three storm surface water lifting stations, and modifications to the airport runway approach lights.
DUBAI WILL CONSTRUCT A USD 8.17 BN DRAINAGE NETWORK.
Dubai plans to upgrade its rainwater drainage system as part of the multi-year project, called “Tasreef" which means “drainage”. This AED 30 Bn (USD 8.17 Bn) infrastructure project aims to increase the capacity of the emirate's drainage network by 700 percent. The drainage project will handle more than 20 Mn cubic meters of water daily and will cover entire Dubai.
The project is anticipated to begin in 2024 and will be completed by 2033. The Tasreef network is expected to last up to 100 years, and it offers a sophisticated and efficient drainage system. It will be built with the help of the biggest tunnel-boring machines in the Middle East.
UAE MOF PUBLISHES THE PUBLIC-PRIVATE PARTNERSHIP MANUAL AND DEFINES PRIORITY SECTORS FOR FIRST PHASE
The UAE Cabinet have approved the UAE’s Public-Private Partnership (PPP) Manual. The goal of the manual is to create a policy and procedural framework that will allow government agencies to conduct their strategic and developmental projects in an efficient and effective manner, and maximise their benefits from the financial, administrative, and technological expertise of the private sector.
Additionally, it encourages the private sector to actively engage and contribute to the UAE's efforts to develop national and strategic projects that will maximize benefits for the society, private sector, and the UAE’s economy. The UAE Ministry of Finance has identified the priority sectors for future partnerships in the first phase.
These sectors include energy, infrastructure, healthcare, social services, and education. The objective of this effort is to construct and manage unified and effective strategies, increase cooperation and interaction between the public and private sectors, given the importance of this collaboration and its impact on various aspects of economic activity.
List of Transactions - Bahrain and UAE Q2 2024
Source: YOG INFRA analysis
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