Sembcorp, Abu Dhabi Water & Electricity Company sings water purchase agreement in UAE

Sembcorp Industries, through its joint venture company Emirates Sembcorp Water & Power Company (ESC), has signed a 20-year water purchase agreement with Abu Dhabi Water & Electricity Company (ADWEC) with regards to the expansion of Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE.

ESC owns and operates the hybrid desalination plant Fujairah 1 Independent Water and Power Plant (IWPP) and the expansion is expected to be completed in the first half of 2015, producing an additional 30 million imperial gallons per day (MiGD).

Under the purchase agreement, ADWEC will buy the additional 30MiGD produced using reverse osmosis technology.

Sembcorp Group president & CEO Tang Kin Fei said, "The expansion of our seawater desalination capacity in strategically-located Fujairah will play an important role in meeting the increasing water demand in the UAE."

The expansion project will increase the total production capacity of the IWPP 100MiGD to 130MiGD.

Of the increased capacity, 67.5MiGD will be produced using reverse osmosis technology whereas the remaining 62.5MiGD will be produced using multi-stage flash.

Emirates Sembcorp Water & Power Company executive managing director William Chang said the innovative part of the expansion project is to recover seawater discharge from the existing multi-stage flash facility for reuse.

"The expansion will also include the installation of a new Dissolved Air Floatation system, which will improve the quality of the seawater feed. This system will enhance the reliability and availability of the reverse osmosis facility," Chang added.

The expansion of IWPP is estimated to cost around $200m, of which Sembcorp's equity investment of $80m will be funded through internal resources.

A contract has been awarded to Acciona Agua and Acciona Infraestructuras, members of the Acciona Group, to design, build and provide seven years' operation and maintenance services for the expansion project.