Dubai seeks investors for major EfW scheme
- EfW facility to treat 6,000 tonnes/day of municipal solid waste
- Project supports Dubai’s zero waste to landfill goal by 2030
- USD 1.1bn capex, USD 900m financing secured for similar Warsan EfW project
The Dubai Municipality has invited international and local developers to express an interest in bidding for a contract to develop, finance and operate a greenfield energy from waste (EfW) PPP, according to two sources familiar with the plans.
To be located southwest of central Dubai in Jebel Ali, the planned EfW facility will have a capacity to treat up to 6,000 tonnes of municipal solid waste a day, one of the sources said, adding that the municipality expects to receive expressions of interest by the end of September.
This capacity is similar to the first scheme Dubai procured several years ago. Located in a former Dubai landfill, the Warsan EfW facility – described as one of the world’s largest – required a capex of USD 1.1bn and secured USD 900m of financing in 2021.
Advised by a team led by Tribe Infrastructure Group and which includes Ashurst and Fichtner, the Dubai Municipality intends to move forward with prequalifying developers for the Jebel Ali EfW facility later this year and to issue the request for proposals early next year, the source said.
The project aligns with Dubai’s zero waste to landfill by 2030 programme, according to a second source, with the emirate planning to close all landfills by next year, according to a domestic media report.
Fichtner declined to comment while Dubai Municipality, Tribe and Ashurst did not respond to requests for comment.
The emirate’s first EfW in Warsan, which has a capacity of 1.9 million tonnes a year, generates 200 MW of thermal energy. The state utility, Dubai Electricity & Water Authority (DEWA), signed a 35-year offtake agreement with the developers for the power produced by the facility.
A special project vehicle comprising six entities implemented the Warsan EfW, led by Belgian utility investor Besix and Japan-headquartered waste specialist Kanadevia, formerly known as Hitachi Zosen Inova. Japan’s Itochu Corporation, Dubai Holding, Dubai Holding Commercial Operations Group, and the UAE’s Tech Group also own stakes in the Warsan EfW project company, known as Dubai Waste Management Company, according to published reports.