DUBAI: The UAE has struck a deal with a consortium of companies including Saudi Arabia's ACWA Power to build a $900 million desalination plant.
The facility will be located in the northern emirate of Umm Al-Quwain to meet the growing demand for water in the region.
The UAE's Federal Electricity and Water Authority (FEWA) agreed the deal with ACWA Power and MDC Power Holding Company, a subsidiary of Abu Dhabi's Mubadala Investment Company, a joint statement said Tuesday.
FEWA will hold a 20 percent stake while ACWA Power and Mubadala will each own 40 percent
The government of Umm Al-Quwain will join as a partner in the project and will own a stake at a later date.
Construction on the 150 million gallons per day plant will start later this year, with initial water production scheduled in 2021.
The project is FEWA's first asset in partnership with the private sector and will reinforce the UAE's water security strategy, Suhail Al-Mazrouei, UAE minister of Energy and Industry and chairman of FEWA said.
Once commissioned, the plant will be the largest desalination project in the northern Emirates.
* with Reuters
