Utico, part of the $2bn UAE-based Ghantoot Group of companies, and Spanish energy giant Grupo Cobra, have sealed a $195 million deal to establish one of world’s largest independent and green desalination facilities in the Al Hamra Jazeerah district of Ras Al Khaimah.
The joint venture, to be called Al Hamra Water Company, is a 60:40 partnership between Utico Middle East and Grupo Cobra respectively and will oversee the development of the world’s largest privately financed independent desalination company. The facility will be located in the Al Hamra Jazeerah area of Ras Al Khaimah and will be the world’s most environment-friendly desalination plant.
A shareholders’ agreement to this effect was recently signed in Dubai by senior officials of Utico Middle East and Grupo Cobra. Once completed in 2017, the Al Hamra Water Company will generate 22 million gallons of water per day (MGD) to serve the needs of Ras Al Khaimah and surrounding regions even across the other northern emirates. The project will create 300 jobs during the construction phase and 80 permanent positions once fully operational.
According to Rashid Mehran Al Baloushi, chairperson of Utico the project is a path-breaking development in the verdant northern Emirate and comes at a pivotal time when governments are removing subsidies for fuel and services. “Our unique model of utilities development, combined with a pro-consumer, environment-friendly approach, has been widely recognised as a good model by governments and other utilities providers in the region,” he told the press gathering.
Utico revealed that the facility will be technologically advanced and have one of the lowest power consumption levels in the region, as well as water re-use saving at least 33,280 tons of CO2 per year. These factors will help the facility to reduce impact on climate change as well as provide quality water to all consumers, the officials affirmed.
Established in 1944, Grupo Cobra is part of the ACS Group, a $65 billion annual turnover company, and develops, builds and operates industrial infrastructures.
Speaking to Logistics News Middle East on the side-lines of the specially convened press conference, Richard Menezes, executive VC and MD of Utico, stressed that costs will be controlled and the company will work within the financial provisions of the agreement. “We have capped the total expenditure and will not exceed the $195m outlay and work strictly within the allocation,” he asserted.
In reply to another question, Menezes said the investment privately funded and coming solely from Utico with no subsidies coming from either the Government of Ras Al Khaimah or the UAE Federal Government. “The Government involvement will be largely oversight and regulation and in ‘off-taking’ implying they will buy water from us at a pre-determined price,” he added.
Miguel Guevara Fernandez, CEO, Grupo Cobra (Water), averred that the group’s investment is a vote of confidence in the UAE’s growth and in the project. He assured that the company has built several advanced facilities from Algeria to Australia and has the expertise and experience to successfully accomplish this challenge as well.
Luis Rein, MD of infrastructure concessions, Grupo Cobra, affirmed that the new facility was part of a strategy to increase the group’s footprint in the Middle East. “Over the past few years, the Middle East’s infrastructure industry, including the desalination market, is witnessing increasing activity and we are keen to expand our profile here,” he added.
This current project is the second mega project announced by Utico for the Emirate of Ras Al-Khaimah. In January 2014, Utico, also successfully concluded a pre-qualification process for a dual, $250 m, 40MW solar power development and 100,000m3/day desalination plant for the northern emirate.
The project was the first-ever private independent water project in the world with a take-and-pay model. When commissioned, the solar independent power project (IPP) will provide power to the desalination plant as well as provide power to the Utico grid.
