Abu Dhabi To Light up 140,000 Streetlights With Energy-Efficient Leds

The Department of Municipalities and Transport (DMT), through Abu Dhabi City Municipality (ADM), and the Abu Dhabi Investment Office (ADIO) today launched Phase 2 of ‘Noor Abu Dhabi’, the Public-Private Partnership (PPP) street lighting project to replace approximately 140,000 of the emirate’s streetlights with energy-efficient LED technology.

The new PPP project is more than three times larger than Phase 1 and will result in significant electricity savings of almost 2,400 million kWh, a reduction of approximately 76% in power consumption equivalent to cost savings of AED 705 million, over the course of the 12-year concession agreement. ‘Noor Abu Dhabi’ is part of the Abu Dhabi government’s increased prioritisation of PPP frameworks for procuring infrastructure projects across sectors including education, transport, and municipalities.

Phase 2 of ‘Noor Abu Dhabi’ follows the commercial close of the Phase 1 tender awarded to Tatweer Middle East and Africa LLC (Tatweer) for the replacement of approximately 43,000 of Abu Dhabi’s streetlights with LEDs, the first PPP project of its kind in the UAE and the region. The Phase 1 contract between DMT, ADM and Tatweer was signed following a competitive tender process under ADIO’s PPP procurement framework.

H.E. Dr. Tariq Bin Hendi, Director General of ADIO, said: “It is always great to work with our partners to move a project from conception to contract and then commencement. ADIO is committed to creating new opportunities for companies in Abu Dhabi by facilitating shovel-ready projects. We will continue to support the delivery of this important project for Abu Dhabi by collaborating with all parties as we move to the implementation stage of Phase 1 and the launch of Phase 2.”

ADIO is the central authority responsible for the management of PPP projects in Abu Dhabi, as part of its mandate to promote private sector investment under the Ghadan 21 accelerator programme. PPP is a key lever to enhance and diversify the emirate’s economy and promote ease of doing business. ADIO’s Infrastructure Partnerships unit collaborates with government departments such as DMT to identify, develop and procure infrastructure partnership projects through ADIO’s PPP procurement framework.

Mohamed Al Dhaheri, Head of ADIO’s Infrastructure Partnerships, commented: “Reaching this landmark milestone for Phase 1 sets the legal, financial and technical basis for the next phases of the ‘Noor Abu Dhabi’ project and lays the foundation for investors to execute effective partnerships with the government. As the first project to be finalised under the new PPP procurement framework, it paves the way for continued collaboration between the public and private sectors to realise long-term, sustainable value.”

Under the terms of the Phase 1 contract, Tatweer will execute a 12-year concession to install and maintain an innovative street lighting system in Abu Dhabi City using energy-efficient LED luminaires that will achieve energy saving levels of about 900 million kWh over the contract period.

Eng. Hussain Ahmed Al Harthi, Chairman of Tatweer, commented, “Tatweer is geared to execute state-of-the-art methodologies coupled with the latest technologies to successfully deliver the project’s set objectives. Through Phase 1, Tatweer will build and deliver the PPP scheme with innovative tools and systems built and tailored specifically for the project. The delivery approach will create the building blocks for the Abu Dhabi Smart City platform and its enablers. The developed systems and innovative solutions will serve the entire initiative through and beyond its first phases.”

The successful commercial close of Phase 1 has paved the way for the launch of the Phase 2 tender, which will be issued by DMT’s ADM under ADIO’s PPP procurement framework in 2021.

H.E. Saif Bader Al Qubaisi, Director General of ADM, said: “Witnessing the progression of this project is a testament to the effective collaboration of the public and private sector, enabling us to collectively deliver more enhanced traffic safety on Abu Dhabi’s roads, while adhering to the highest standards of sustainability for infrastructure projects and services to all residents in the emirate. This project will reduce the energy consumed by traditional street lighting, the carbon footprint, and brightness resulting from excessive lighting, while simultaneously saving on resources.”

ADIO recently issued new PPP procurement regulations and published the Partnership Projects Guidebook to support greater collaboration between the public and private sectors in Abu Dhabi through PPP projects. ADIO will also be hosting a free info-webinar on 10 November 2020 to introduce potential investors to the PPP procurement and legal framework. The webinar will feature senior members from ADIO’s Infrastructure Partnerships and Legal teams. Registration details will be shared on ADIO’s social media channels next week.