Dubai Waste Management Company has appointed Germany’s Siemens Energy to supply power equipment for the $1.2bn waste-to-energy (WTE) project to be located in a former landfill site in Warsan in Dubai.
The German firm will supply electrical house substations to deliver distributed power to the entire process plant, which ‘will be in continuous operations.’
The contract is understood to entail the provision of switchgears, distribution transformers and other power-related solutions for the project.
The project company reached a financial close for the $900m long-term loan for Dubai Municipality’s first major WTE scheme, which will be implemented on a build, operate, transfer (BOT) model, MEED reported in June.
The financing will be provided by Japan Bank for International Cooperation (JBIC) and private financial institutions including Societe Generale Bank, KfW IPEX Bank, Standard Chartered Bank,
Sumitomo Mitsui Banking Corporation, Mizuho Bank, Siemens Bank and Credit Agricole Bank.
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Nippon Export & Investment Insurance (Nexi) will provide the insurance for the part of the loan being provided by the financial institutions.
Dubai Waste Management Company comprises:
- Tech Group
- Hitachi Zosen Inova
- Itochu Corporation
- Dubai Holding
- Dubai Holding Commercial Operations Group
The plant will treat 1,900,000 tonnes of municipal solid waste annually, which is equivalent to 45 per cent of Dubai’s current municipal waste generation. It is expected to generate up to 200MW of energy that will be fed into the local grid.
Early construction works on site started in 2020. The facility will consist of five processing lines, which will be delivered in 2023 and 2024.
Hitachi Zosen Inova and Besix will be in charge of the operations and maintenance of the plant for 35 years.
According to Besix, 2,500 workers will be deployed at the peak of works and the site will use up to 16 tower cranes, including the world’s largest tower crane, in order to install the equipment inside the plant.
Sumitomo Mitsui Banking Corporation (SMBC) provided financial advisory services to the consortium. Covington & Burling is the legal adviser.
The project supports Dubai Clean Energy Strategy 2050.
Energy Transition in the Middle East
A major new report from MEED looks at how the global shift away from fossil fuels is reshaping energy policy in the Middle East and North Africa, and its impact on business and project investment.
This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.