Joint Venture to Build Million Dollar Desal Plant

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Joint Venture to Build Million Dollar Desal Plant

A joint venture between Spain's Grupo Cobra and Emirates-based Utico Middle East is building a Dh 719 million (US$ 195.7 million) desalination plant in northernmost emirate, Ras Al Khaimah

Utico Middle East and Spanish firm Grupo Cobra entered a 60:40 partnership to construct the "world's largest privately financed independent desalination company", state agency  WAM  said. 

The facility will be set in Ras Al Khaimah's Al Hamra Jazeerah area. 

Due for completion in 2017, Al Hamra Company's plant will generate 22 million gallons of water per day (MGD). 

The project is expected to generate 300 jobs during construction, and 80 jobs when operational. Emiratis will be offered up to 25% of these jobs. 

The tender for the project was announced in November 2013. The legal firm Latham & Watkins will oversee the project, for which KPMG is the financial advisor. 

"The project is a path-breaking development and comes at the right time especially when governments are removing subsidies for fuel and services," Rashid Al Baloushi, chairman of Utico, said. 

Source: Construction Week Online

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