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Dewa to Press Ahead with Dh72.5b Investment Plan

Saeed Al Tayer, managing director and chief operating officer of Dewa, said the utility company, which had already spent Dh15.5 billion for projects that had come on stream over the past two years, was on track to forge ahead with further investments of Dh57 billion on projects that were under way.

Al Tayer’s remarks came in the wake of an observation by investment bank EFG-Hermes that the Government of Dubai would have enough cash available to meet the short term needs of all distressed parts of the economy if the government owned utility company were to delay its ambitious capital expenditure plan.

Dewa requires $2.2 billion to refinance some of its debt by April 13. Of Dubai’s four large debt obligations repayable during 2009-10, only Dewa’s loan is due in the short term, according to EFG-Hermes.

Dewa launched the five-year Dh72.5 billion capital spending plan in 2007 that envisaged massive output boost in power and water to feed the emirate’s growing demand.

According to Al Tayer, work on major projects for production, transmission and distribution of electricity and water was progressing in line with Dubai’s Strategic Plan

Dewa currently has a power output capacity of 6,676 megawatts while the peak load is 5,287 megawatts and a surplus of 1389 MW, which exceeds 26 per cent of electricity required during peak demand.

He said production capacity of electricity would reach 7,287 megawatts by the end of this year, up nine per cent.

The production capacity of desalinated water would reach 333 million imperial gallons per day (MIGD) by the end of this year. The highest demand was 264 MIGD, with a surplus of 14 MIGD. Al Tayer said Dubai’s electricity and water transmission and distribution networks would expand horizontally and vertically in compliance with the construction plans of the emirate. In 2008, Dewa commissioned 28 132kv substations and one 400kv substation. In the pipeline are 27 more 132kv substations and new water transmission and distribution networks, water storage complexes and pumping stations.

issacjohn@khaleejtimes.com