Dubai: Emirates NBD and HSBC have said they will offer $200 million (Dh734.6 million) in funding to the winner of the tender to build Dubai Electricity and Water Authority's (Dewa) Hassyan Independent Power Project Programme (IPP), Dewa announced yesterday.
However, Saeed Al Tayer, managing director and chief executive officer of Dewa, told Gulf News that this offer does not mean the successful company will have to go with either bank.
"The winner of the bid to develop the project is free to choose the best bank or financial institution to facilitate their work," he said.
"The two key banks with relationships with Dewa — Emirates NBD and HSBC — have announced their support for the IPP just to encourage bidders and assure them that they can get financial facilities from local and international lenders.
"It is not obligatory but optional. None of the bidders needs to stick to one of these banks for financial support."
The Hassyan 1 IPP will have a capacity of 1,600 megawatts and be owned 51 per cent by Dewa and 49 per cent by the winning party. It will form part of the Hassyan power generation complex.
Dewa earlier announced plans to build a large power and desalination complex at Hassyan with six plants and a total capacity of up to 9,000 MW and 720 million gallons per day of desalinated water.
This was in response to the increasing population in the UAE and the continued expansion of facilities.
