Taqa awards Dhs900m projects to expand recycled water business
The two new projects will collectively encompass the laying of approximately 150 kilometres of pipelines in two phases. File/WAM
“The two new projects will upon completion have a combined capacity to transmit approximately 85 million imperial gallons per day (MIGD) of recycled water - enough to irrigate more than 3.5 million palm trees,” Taqa said in a statement on Sunday.
It added, “The programme’s expansion will significantly increase the use of recycled water beyond municipal landscaping to include commercial and agricultural operations. Following completion of the projects, approximately 4,000 farms could benefit from the supply of recycled water, which would further support the programme’s objectives to optimise the use of desalinated water, prevent the depletion of ground water resources and divert more recycled water towards a wider range of uses.
“This phase of ADDC’s recycled water distribution programme builds on its announcement in January, when the company began transmitting a capacity of 4.4 MIGD of recycled water for landscaping irrigation on Saadiyat Island, through a new transmission scheme supplied from the existing network on Yas Island. Now, ADDC’s expanded transmission infrastructure will serve commercial and agricultural clients along the outskirts of the city of Abu Dhabi. These two new projects will, collectively, encompass the laying of approximately 150 kilometres of pipelines in two phases, with the first 30 MIGD pipeline project slated for completion by Q3, 2021 and the second 55 MIGD project slated for Q4 2021.”
Omar Abdulla Alhashmi, Executive Director of Transmission and Distribution at Taqa, said, “Our expanded recycled water programme directly supports Taqa’s vision for a future in which we are not only a sustainable, reliable and efficient supplier of water, but an organisation whose operations directly contribute to the realisation of the UAE’s broader sustainability and environmental goals. We are particularly focused on the goals outlined in the national strategies for energy and water supply, which anticipate an increase in demand and the deployment of more clean technologies and sustainable methods of service delivery. The expansion of ADDC’s recycled water distribution programme plays a key role in Taqa’s transformative impact on Abu Dhabi’s utilities sector - across the value chain and for decades to come.”
Saeed Mohamed Al Suwaidi, Managing Director of ADDC, added, “ADDC’s recycled water distribution programme plays an integral role in meeting the objectives set forth in the UAE’s Water Security Strategy 2036. By implementing practical and sustainable solutions that optimise desalinated water usage and protect our precious ground water resources, we will continue to reinforce the Emirate’s strategic approach to achieving water and environmental sustainability.”
Today’s recycled water expansion follows the announcement of Taqa’s successful transaction with ADPower on July 1, 2020, which created the UAE’s 3rd-largest publicly listed company by market capitalisation and a top-10 utility player in the EMEA region by regulated assets. As part of the transaction, the majority of ADPower’s power and water generation, transmission and distribution assets, including ADDC, were transferred to Taqa in exchange for 106,367,950,000 new shares. Earlier the Abu Dhabi National Energy Company (Taqa), announced that international credit rating agencies Moody’s Investors Service and Fitch Ratings have upgraded its final issuer ratings by three notches to Aa3 from A3 and by two notches to AA- from A, respectively.
According to a press release issued by Taqa on Sunday, the ratings represent the fourth highest investment grade rating on each of the agencies’ rating scales and are based on solid, investment grade standalone ratings of ‘baa1’ and ‘bbb+’ assigned by Moody’s and Fitch, respectively.
The standalone ratings are boosted by strong implied support from the Government of Abu Dhabi, Taqa’s majority indirect owner, to arrive at the final issuer ratings, as per the agencies’ rating methodologies.
The upgrades to Taqa’s credit ratings come within days of completing the landmark transaction between Taqa and Abu Dhabi Power Corporation, ADPower, which saw the transfer of the majority of ADPower’s power and water generation, transmission, and distribution assets to Taqa in exchange for 106,367,950,00 new shares.
WAM
