The facility will treat 5,666 tonnes of municipal solid waste produced by Dubai per day.
Dubai Holding on Monday said it had signed an agreement with five firms to develop a Dh4 billion ($1.1 billion) energy-from-waste facility.
The consortium consists of Dubai Holding, Switzerland-headquartered Hitachi Zosen Inova, Japan’s ITOCHU Corporation, Belgium’s BESIX Group, and local construction firm Tech Group, it said in a statement.
The build-and-operate project has a 35-year concession period with the Dubai Municipality. The facility will treat 5,666 tonnes of municipal solid waste produced by Dubai per day, the statement said, adding that it would generate energy by processing 1.9 million tonnes of waste per year.
Khalid Al Malik, Managing Director of Dubai Holding, said this significant investment by the group of companies that form this consortium, highlights international confidence in the UAE market and Dubai’s continued appeal in attracting foreign direct investment, despite a more challenging global economic climate.
“By partnering with a strong consortium of strategic and financial investors, we are delivering on our promise of continuously supporting the emirate’s growth and diversification strategy. As a responsible business, Dubai Holding is committed to the United Nations Sustainable Development Goals and ensuring everything we do contributes to the Good of Tomorrow,” he said.
Project finance loan agreements worth $900 million have been finalised with Japan Bank for International Cooperation and financial institutions including Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
Dawoud Al Hajri, director-general of Dubai Municipality, said the Dubai Centre for Waste Processing is proceeding according to schedule, with the support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
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.
“Dubai Municipality is setting up an attractive environment for investors to support increased foreign direct investment,” he said.
The construction of the project is being carried out by BESIX Middle East and Hitachi Zosen Innova. At the peak of the works, 2,500 workers will be deployed, and the site will use up to 16 tower cranes, including the largest tower cranes in the world for the installation of equipment inside the plant.