Palm Water wins Dh1.4 billion Jebel Ali Free Zone contract
Palm Water LLC, a company owned by Istithmar, today announced that it has been awarded a US$550 million contract by Jebel Ali Free Zone (Jafza) to design, build, own and operate (DBOO) water and wastewater plants. This is in addition to the 30 year concession awarded to Palm Water for associated networks and collection systems that will serve Jafza’s aggressive property development expansion programme in Dubai.
The contract adds yet another major project to Palm Water’s order book, bringing the company’s associated capital works programme in excess of Dh5 billion this year, with similar DBOO projects under way for Nakheel at Palm Jumeirah, International City and Jumeirah Golf Estates.
Palm Water will construct three major facilities – a desalination plant with a capacity of 100,000 m3 per day; a centralized sewage treatment plant (STP) with a capacity of 141,000 m3 per day; and an industrial wastewater plant with a capacity of 4,000 m3 per day.
Salma Hareb, Chief Executive Officer of Jafza and Economic Zones World, said: “Palm Water LLC had demonstrated two key competitive attributes that were critical to the success of our project – track record, quality and delivery schedules. Jafza is one of the main drivers of Dubai’s phenomenal growth and we have chosen to associate ourselves with Palm Water LLC, who espouse and share our commitment to the Emirate’s incessant growth and the nation’s prosperity.”
Yousuf Kazim, Chairman of Palm Water, said: “We are pleased to have been awarded this water and wastewater project by Jafza and we are committed to provide them with the state-of-the-art technology solutions to meet their water utility needs. We will closely work with Jafza engineers and reputed international technology companies to provide Jafza with key water and wastewater services for their high priority developments.”
The 30-year concession awarded to Palm Water also includes associated networks and collection systems as well as related pumps and pump stations. The water from the desalination plant will be used throughout Jafza’s labour camps while the STP will serve the Free Zone Authority’s entire development. The industrial plant will serve Jafza’s industrial and commercial clients.
The plants will also serve JAFZA’s expansion plans covering the developments in Jafza North, Jafza South, Techno Park and Down Town Jebel Ali. Both the sewage treatment and water desalination plants will be built in phases to match Jafza’s expansion plans, with priority being given to the Sewage Treatment Plant.
In his comments, Robert (Bob) Bryniak, Chief Executive Office of Palm Water, said: “The first phase of the sewage treatment plant of 35,000 m3 per day capacity will be operational by January 2008. We will be using the treated sewage effluent to meet the irrigation needs throughout Jafza.”
He added: “The first phase of the desalination plant will be completed by mid-2008. The schedule for the industrial waste treatment plant is being finalized with Jafza and when completed, it will treat raw sewage in accordance with Jafza’s environmental rules and regulations.”
The STP is expected to reach full capacity by the end of 2010, with the desalination plant to be operational by 2011. The scope of the contract awarded to Palm Water covers designing, supplying, constructing, owning, operating and maintaining the STP, as well as owning, operating and maintaining the pumping stations and tanks. Networks and collection systems will also be designed and constructed by Palm Water and maintained by the company during the 30-year concession period.
Top-ranking international and local companies are expected to be involved in the design and construction of the plants. The desalination plant will utilize reverse osmosis, converting nearby seawater into potable drinking water meeting Dubai standards. The STP will be based on Membrane BioReactor (MBR) technology that produces a high grade of reusable water that can be used for irrigation. The technology platform for the industrial wastewater plant will vary depending upon the influent characteristics of the industrial sewage and this decision will be made following consultations with Jafza.
Palm Water LLC is owned 95% by Istithmar PJSC, the investment arm of Dubai World, and Hyflux Ltd, which owns the remaining five per cent. It undertakes contracts to build, own and operate (BOO) projects; or build, own and transfer (BOT) of developments. It also participates in similar arrangements related to seawater desalination plants; commercial, municipal, industrial water treatment plants; wastewater treatment and recycling plants; potable water and treated wastewater distribution networks; wastewater collection network; and other related businesses that include the selling and distributing associated products related to the water business.
Palm Water is presently implementing two desalination plants located on the Palm Jumeirah and STPs at International City and Jumeirah Golf Estates.
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