Acwa inks $478m water purchase deal for Phase II of Hassyan desal project

CONSTRUCTION NEWS

Dubai Electricity and Water Authority (Dewa) has signed a water purchase agreement and a shareholder agreement with Acwa, valued at AED1.76 billion ($478 million), for the second phase of the seawater reverse osmosis (SWRO) desalination project at the Hassyan complex in Dubai.

The project company will be responsible for the development, financing, construction and operation of the desalination plant, with Dewa holding a 60% stake and Acwa the rest.

Under the 30-year water purchase agreement, the second phase will be developed with a production capacity of 272,000 cu m. This phase complements the 180 MIGD first phase, which has been developed at an investment of AED3.36 billion ($914 million) as Dewa’s first project based on the Independent Water Producer (IWP) model.

Once both phases are completed, the emirate’s total desalinated water production capacity will reach approximately 735 MIGD by 2029.

"The signing of the Water Purchase Agreement and the Shareholder Agreement with Acwa for the second phase of the Hassyan project embodies our firm commitment to strengthening Dubai’s water security through sustainable sources, leveraging the latest technologies and innovative solutions," said Saeed Mohammed Al Tayer, MD & CEO of Dewa, after signing the deal with Mohammad Abunayyan, Founder and Chairman of Acwa.

"With the addition of 60 MIGD, Hassyan will become the world’s largest SWRO desalination plant with a total production capacity of 240 MIGD. It also reflects our confidence in partnerships capable of transforming vision into tangible achievements," stated Al Tayer. 

"The 30-year Water Purchase Agreement marks a significant step in our journey to enhance production capacity using reverse osmosis technology, while reinforcing Dubai’s leadership in adopting cutting-edge solutions, improving water production efficiency, and achieving sustainability," he noted. 

"In line with the UAE Water Security Strategy 2036 and the Dubai Clean Energy Strategy 2050, we are steadily advancing the development of innovative water desalination solutions that reduce emissions, ensure sustainable access to water, and support the goal of achieving net zero by 2050," said Abunayyan.

"We are investing in the future of water with confidence and a long-term vision, harnessing technology and innovation to build a water security system that keeps pace with Dubai’s rapid growth and meets the rising demand for water services. Furthermore, we are building on the positive results achieved by the UAE in the Integrated Water Resources Management Index through the robust integration of water, energy, and environmental strategies," he added.

Abunayyan pointed out that water security was fundamental to sustainable economic growth and long-term resilience. "Our partnership with Dewa, built over more than a decade of collaboration in Dubai's power and water sectors, reflects a shared commitment to delivering reliable, efficient infrastructure at scale," he noted. 

"Expanding Hassyan is a natural next step in that partnership, allowing us to build on our existing investment and development capabilities while creating long-term value. We are proud to support Dubai's water security ambitions and look forward to delivering this next phase with the same focus on efficiency, reliability, and execution excellence that defines our approach across the Acwa portfolio," he added.

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