UAE - Mubasher: Dubai Holding has formed a consortium with Dubal Holding, ITOCHU Corporation, Hitachi Zosen Inova, BESIX Group, and Tech Group to establish one of the world’s largest energy-from-waste (EfW) facility worth AED 4 billion.
The consortium will develop and operate the project under a 35-year concession period with Dubai Municipality, according to a press release on Monday.
This public-private partnership is in line with commitments to the UN Sustainable Development Goals and Dubai Clean Energy Strategy 2050.
To be located in the Warsan area, the Dubai Centre for Waste Processing will treat up to 1.9 million tonnes of waste per year and convert them into renewable energy.
To have the capacity to process up to 45% of Dubai's current municipal waste generation, the facility will generate around 200 MW of electricity, which will be fed into the local grid as clean energy.
Meanwhile, the project finance loan agreements, worth $900 million, have been finalised with Japan Bank for International Cooperation and other financial institutions.
The financial institutions include Société Générale Bank, KfW IPEX Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Siemens Bank, and Crédit Agricole Bank.
The Managing Director of Dubai Holding, Khalid Al Malik, said: "This significant investment by the group of companies that form this consortium, based on an agreement with Dubai Municipality, highlights international confidence in our market and Dubai’s continued appeal in attracting foreign direct investment, despite a more challenging global economic climate."
Meanwhile, the Director-General of Dubai Municipality, Dawoud Al Hajri, commented: "The strategic focus of this project is to achieve environmental protection, reduce carbon emissions, divert waste from the landfills, and contribute towards the realisation of Dubai's strategy to shift towards clean energy."
