The partnership based on two main pillars, the public sector and the private sector, aims to achieve a sustainable economy that serves the national agenda of the UAE, by combining the resources and expertise of the two sectors.
These partnerships can also help in financing, building and operating state projects, including sustainable infrastructure projects, at the lowest cost and in the shortest possible time, and based on the wise vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, that «The UAE is able to deal with various events and changes.
This flexibility and harmony between the public and private sectors is necessary to preserve and multiply our gains.” DEWA has developed a pioneering model of partnership between the public and private sectors, which is one of the most important strategic initiatives launched by DEWA, in order to achieve a major goal represented in attracting investments in the field of energy and water in the Emirate of Dubai. In addition to the transfer of knowledge and modern technologies to diversify energy sources according to the best international practices.
The initiative came in line with the directives of our wise leadership, and in support of the Authority’s efforts and leadership in innovative fields that serve the main elements of economic, social and environmental sustainability.
The initiative supports the achievement of the objectives of the “Dubai Clean Energy Strategy 2050” and the “Dubai Carbon Neutral Strategy 2050”, which aims to provide 100% of the energy production capacity in Dubai from clean energy sources by 2050.
Examples through which partnerships between the public and private sectors have been used to successfully complete a number of sustainable projects is the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest solar energy project in the world in one location with a capacity of up to 5,000 megawatts by 2030 and investments of up to 50 billion dirhams.
When DEWA started the first phase of the complex “with a capacity of 13 megawatts”, one of the main challenges was the high cost, and an integrated plan was developed in order to meet our requirements, as we developed a pioneering model of partnership between the public and private sectors in the field of electricity and water production in the Emirate of Dubai. It is the Independent Power and Water Producer (IPWP) model.
Which is commensurate with the requirements of the Emirate of Dubai and its legislative and technical environment to obtain integrated solutions for energy and water technologies and aims to enable profitable partnerships for both parties, attract investments, and ensure sustainability.
In addition to the transfer of knowledge and modern emerging technologies in accordance with international best practices, in a way that supports effective partnership between the public and private sectors instead of direct contracting with contractors according to the traditional model. Principality.
After the success achieved by the authority in the independent energy producer projects in the Mohammed bin Rashid Al Maktoum Solar Energy Complex, we launched a seawater desalination project with a production capacity of 120 million gallons per day, using reverse osmosis technology to desalinate sea water using clean energy according to the independent water producer system.
The authority achieved a global achievement by obtaining the lowest global competitive price, after it was re-bid for the project in 2020, as it is the first project of its kind to operate according to the independent water producer model of DEWA.
The success of the independent energy and water producer model used by the Authority depends primarily on the effective application of good governance to ensure transparency, accountability and the rule of law to enhance investor confidence, develop an attractive regulatory, supervisory and legislative environment, and launch joint projects after conducting technical, economic, financial and other feasibility studies.
And the use of specialized international houses of expertise if necessary, and the adoption of the principle of achieving fair gains for the two parties to the partnership, and the study of risks and challenges and the development of adequate treatments in advance, and the participation of the public sector to the private sector in an appropriate proportion of contribution to ensure government control of projects and give appropriate reassurance to investors.
Among the benefits of using effective partnerships between the public and private sectors to provide sustainable projects is achieving world records for the lowest prices for solar energy projects for five consecutive times, in addition to attracting investments estimated at 40 billion dirhams, which contributes to the growth of the emirate’s economic indicators such as the foreign direct investment index.
On the operational level, the Authority has established a department concerned with clean energy and the application of the independent producer model for energy and water, as well as following up on the committees and teams working on implementing the new system in terms of contractual, financial and procedural aspects of changing the method of managing projects in the Authority to be compatible with the principle of partnership between the public and private sectors instead of direct contracting with Contractors according to the traditional model.
Cooperation and integration between the government and private sectors has become an important pillar for achieving the emirate’s aspirations and consolidating its position as an advanced model that provides the appropriate climate and environment supportive of investment to promote economic growth, sustainable development and the implementation of projects in accordance with the highest standards of quality and efficiency, in a way that benefits all parties, thus contributing to advancing the developmental renaissance. Dubai is witnessing in all fields.
As it is steadily on its way to be one of the 3 best economic cities in the world, according to the Dubai Economic Agenda D33, and to contribute to making the UAE the best country in the world by its centenary in the year 2071.
* Managing Director and CEO of Dubai Electricity and Water Authority
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