We have covered key developments in PPP and infrastructure across UAE and Baharain in our final insight of Q3 2024. UAE has recently attracted good interest from private sector participants to develop energy, water and urban infra proejcts in the country and we also see country-level MOUs being signed.
Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q3 2024 series.
UAE
MASDAR SECURES USD 1 BN THROUGH SECOND GREEN BOND TO FUND NEW GLOBAL RENEWABLE PROJECTS
Masdar, the UAE’s leading clean energy company, has announced the successful raising of USD 1 Bn through its second green bond issuance under its Green Finance Framework. The company’s first successful issuance of USD 750 Mn was on the International Securities Market of the London Stock Exchange In 2023. The latest issuance consists of two tranches of USD 500 Mn each, with tenors of 5 and 10 years and coupons of 4.875% and 5.25%, respectively.
The issuance received strong interest from regional and international investors, with the order book peaking at USD 4.6 Bn, representing an oversubscription of 4.6 times. Allocation was finalized with 70% for international investors and 30% for MENA investors. The USD 1 Bn proceeds will fund Masdar’s equity commitments for new greenfield projects, many in developing economies, as the company aims for a portfolio capacity of 100 GW by 2030.
ABU DHABI AGREES TO STUDENT ACCOMMODATION PROJECT PPP
The Abu Dhabi Investment Office (ADIO) in collaboration with Khalifa University of Science and Technology has awarded KUnnected Living, a consortium led by construction firms Plenary Group, Besix and Abu Dhabi-based investor Mazrui International. The project is the largest student accommodation project in the GCC developed under a Public-Private Partnership (PPP) model. The Project includes a 23-year concession to design, build, finance, and maintain 3,260 student rooms and communal facilities located across Khalifa University’s Main Campus and its Sas Al Nakhl (SAN) Campus.
The student accommodation project is being implemented through Abu Dhabi’s proven and successful Public Private Partnership Programme, which seeks to expand the role of the private sector in delivering major public sector infrastructure and services. ADIO is the central Abu Dhabi Government authority responsible for the facilitation, development and procurement of all infrastructure projects delivered through the PPP framework.
The PPP project is set to boost Abu Dhabi’s economy through the attraction of foreign direct investment and will support local suppliers and manufacturers by drawing local content and products from the national supply chain for development and operation.
UAE’S ABUNDANCE TO DEVELOP USD 14.97 MN SOLAR POWER PLANT IN KEZAD
The UAE -based Abundance Solar Panels Industries and KEZAD Group have signed a 50 -year land lease agreement to establish an AED 55 MN (USD 14.97 Mn) solar power plant in KEZAD. The solar power plant, sprawling over 27,000 square meters, will manufacture solar panels and integrated photovoltaic modules for business across industries looking to move energy -efficient ecosystems.
The plant marks another milestone in the history of KEZAD Group, a subsidiary of AD Ports, highlighting AD Ports Group’s strategic vision to promote the transition to renewable energy and to accelerate the pace towards the UAE net zero strategy. The plant will leverage the latest innovative technology in solar panels and operate within a sustainable ecosystem, emphasizing the environmental responsibility and stewardship that KEZAD Group stands for. This initiative emphasizes KEZAD’s group commitment to shaping the future of energy in Abu Dhabi.
GCC AIMS FOR 80 GIGAWATTS OF RENEWABLE ENERGY BY 2030, DRIVING SUSTAINABLE FUTURE
The Gulf Cooperation Council (GCC) is aiming for a significant shift towards renewable energy, with plans to generate approximately 80 gigawatts (GW) of renewable energy by 2030. This ambitious target is expected to yield substantial social and economic benefits, including job creation, fuel savings, and reduced carbon emissions. The challenges posed by the intermittent nature of renewable energy sources such as solar and wind, compared to traditional sources. These challenges are amplified by the increasing demand for electricity due to rapid economic growth in the GCC region.
The GCC Interconnection Authority is actively addressing these challenges by implementing innovative solutions. These include energy storage technologies to ensure a reliable and stable electricity grid, continuous monitoring and artificial intelligence to analyze grid data, enabling proactive decision-making and preventing potential disruptions, and carbon footprint analysis to develop strategies for reducing environmental impact of the GCC Interconnection Authority, aligning with global efforts towards net-zero emissions.
The Authority is also working on expanding the interconnection network with Kuwait, the UAE, and Oman, aiming to increase capacity over 3,000 megawatts for Kuwait and UAE, and enhance the direct connection with Oman from 400 MW to 1,400 MW. The GCC’s ambitious renewable energy goals and the proactive measures taken by the Interconnection Authority demonstrate a strong commitment to a sustainable future, contributing to global efforts to combat climate change and secure a cleaner energy future for the region.
ABU DHABI APPROVES 144 INFRASTRUCTURE PROJECTS WORTH USD 18 BN WITH FOCUS ON HOUSING
The Abu Dhabi Projects and Infrastructure Centre (ADPIC) is making an investment of AED 66 Bn (USD 18 Bn) for 144 projects across Abu Dhabi spanning various sectors, including housing and quality of life, education and human capital, tourism and natural resources. The investment will significantly enhance the emirate’s infrastructure and quality of life. The ADPIC centre has several key responsibilities, which include reviewing capital projects proposed by government entities and submitting recommendations to Abu Dhabi Executive Council to achieve the emirate’s development goals, supervising projects’ implementation to ensure adherence to approved plans and overseeing quality standards and safety criteria while ensuring timely delivery.
ADPIC is also responsible for making decisions on matters related to capital projects such as project developer selection and identification, developing contract templates, standardising project design criteria and coordinating with government entities to identify and promote best practices and options for the execution of capital projects in the emirate of Abu Dhabi.
BAHRAIN
BAHRAIN RECEIVES BIDS FOR 100 MW AL DUR SOLAR PV POWER STATIONS
The Electricity and Water Authority (EWA) has announced the launch of a tender for the construction of a new solar power station in the Al Dur area of the Southern Governorate. This project, with an anticipated capacity of 90-100 megawatts, aligns with Bahrain's national goals of diversifying and sustaining its energy resources, as outlined in the kingdom's energy transformation plan.
The tender will be executed on a turnkey basis, encompassing all stages from engineering and design to construction, installation, and connection to the EWA grid. The project is expected to be completed within 18 months from the date of commencement. TBEA Xinjiang Sunoasis Company Limited emerged as the sole qualified bidder, offering a bid of BHD 27.6 Mn (USD 73.26 Mn). The project aims to generate clean energy, reduce reliance on fossil fuels, and support Bahrain's environmental sustainability objectives, contributing to the kingdom's broader sustainable development goals.
UNDP BAHRAIN FACILITY POWERS UP WITH GREEN ENERGY
UNDP (United Nations Development Programme) Bahrain has installed a cutting-edge solar energy system on the rooftop of the UN House. This initiative is a significant part of UNDP's global Greening Moonshot Initiative, which is committed to reducing its carbon footprint by 50% by 2030. The newly inaugurated solar-powered installation boasts a capacity of 52 kWp, supplying a portion of the United Nations House's electricity needs. This move not only contributes to significant CO2 reductions but also brings it closer to achieving carbon-neutral operations, leading to substantial economic savings and more efficient resource management.
BAHRAIN INAUGURATES USD 85 MN POWER, WATER STATIONS
The government of Bahrain inaugurated a new 220 kV electricity transmission station and a water distribution station at the Al Hidd Housing Project. The stations, which together cost USD 85 Mn, are part of the government's efforts to enhance infrastructure and meet the growing demand for essential services in the country.
The electricity station has a capacity of 360 MVA and is expected to serve nearly 40,000 users in Hidd and surrounding areas by transmitting power from the main electricity grid to the local 66 kV substations. The water distribution station has a storage capacity of 2.34 million gallons and is equipped with advanced monitoring and control systems.
SAUDI ARABIA, BAHRAIN EXPLORE 2 GW SOLAR PROJECT
Bahrain is in talks with Saudi Arabia to construct a 2-GW solar power plant, with the majority of the clean electricity to be allocated to the aluminium smelter Alba - Aluminium Bahrain. Alba is grappling with energy-related challenges, resulting from the adherence to environmental, social, and governance (ESG) regulations and rising energy costs.
Alba's majority shareholder is Bahrain's sovereign wealth fund Mumtalakat with a stake of more than 69% while Saudi Arabia's Sabic Industrial Investment Co. holds 20.6% of the business. Alba owns the largest aluminium plant outside China which in 2023 produced 1.62 million tonnes of aluminium.
List of key transactions - UAE and Bahrain Q3 2024
Source: YOG INFRA analysis
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