Saudi-based Acwa Power, a global leader in water desalination and power generation, said its consortium with MDC Power Holding Company – an entity fully owned by Mubadala Investment Company – has entered into a water purchase agreement with Federal Electricity and Water Authority (Fewa) for a 150-million-gallons-per-day desalination plant to be located in Umm Al Quwain (UAQ).

Under the terms of the agreement, Fewa will hold 20 per cent of the stake, while Acwa Power and Mubadala will each own 40 per cent of the plant, which will utilise seawater reverse osmosis technology.

The government of Umm Al Quwain will join as a partner in the project and will own a stake at a later date, according to Acwa Power.

Once commissioned, the Umm Al Quwain plant will be the largest desalination project in the Northern Emirates. The project cost is deemed as highly competitive and it will utilise state-of-the-art technology allowing it to efficiently produce water while preserving the environment.

Construction is expected to commence in the second half of 2019, with initial water production scheduled in 2021. The project is part of the UAE’s effort to optimise water production and meet the increasing demand for water in the country.

Announcing the project, Umm Al Quwain Crown Prince Sheikh Rashid bin Saud Al Mualla said: “This is an important milestone in the series of development projects in the UAE, as it enhances the partnership between the public and private sectors and reflects positivity on the overall national economy; the project is also strategically located between Ajman, UAQ and Ras Al Khaimah.”

UAE Minister of Energy and Industry and Fewa chairman Engineer Suhail Mohamed Al Mazrouei said: “This project is Fewa’s first asset in partnership with the private sector. Its implementation will reinforce UAE’s Water Security Strategy 2036 as well as bolster its core programmes.”

“The plant is set to supply 150 million gallons per day to the Northern Emirates and will prompt the private sector to further invest in those areas,” he added.