Dubai will for the first time allow private investors to own a stake in the power industry, in a move designed to ease the government’s investment burden and make the sector more efficient. The announcement by Saeed al Tayer, the DEWA managing director and chief executive, represents a watershed moment in the emirate’s power sector and follows a trend towards privatisation of power stations across the region. The Dubai Electricity and Water Authority (DEWA), which is fully owned by the Dubai Government, wants help in attracting investors by creating an independent regulator and deciding on an ownership structure for its first private power project, a 1,500 megawatt plant to be built at Hassyan, close to the Abu Dhabi border. DEWA hoped to “encourage the private sector to engage in such strategic projects and to establish a business model that depends on the competitiveness and the latest technology available”, Mr al Tayer said. Dubai’s economic conditions presented an ideal opportunity to implement an independent water and power project, but were not the main driver behind the plan, said Waleed Salman, the DEWA vice president for business development and regulation. The privatisation plan was under consideration before Dubai’s debt troubles rose in November, he indicated. DEWA, like other Dubai Government entities, has suffered credit rating downgrades since Dubai World announced its debt restructuring effort. |
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