The Federal Electricity and Water Authority is spending Dh1.7 billion on a new power and desalination plant currently being built in Ajman, said a senior official.

This is part of Fewa's continuing development projects worth Dh3.15 billion.

"The board has approved construction of the first phase of a new power and desalination plant in the Al Zawahara area in Ajman," Yahya A.K. Ahmad, deputy director-general of Fewa's Technical Affairs, told Gulf News.

"Work on the first phase of the two-phase development is currently underway and construction packages have already been awarded. Power generation capacity of the first phase is 900 megawatts. It will also produce 30 million gallons of desalinated water per day. Gas turbines will be supplied by General Electric."

The project is expected to be commissioned in 2007. "We are also working on a number of other projects, as the demand is growing steadily at a rate of 7 to 7.5 per cent per year. Our capacity is well above the demand," he said.

About 30 per cent of the national power grid has also been completed, and the rest of the project is progressing well, he said.

He was speaking ahead of the Middle East Electricity exhibition, which will highlight the development of the region's utility sector, at the Dubai World Trade Centre from March 6 to 9.

Fewa supplies power and water to Ajman, Fujairah, Umm Al Quwain, Ras Al Khaimah and part of Sharjah emirate. It has a customer base of 200,000 subscribers in these five emirates.

It currently generates 1,150 megawatts of electricity and 24 million gallons of desalinated water daily. By 2006, its power generation capacity will reach 1,400 megawatts and 42 million gallons of water.

Fewa will commission a 100 megawatt power station in Ras Al Khaimah's Nakheel area.

"We are also currently implementing a Dh560 million transmission and distribution project, in addition to expanding the distribution network, valued at Dh300 million," he said.

"Besides, among the ongoing projects, we have commissioned a Dh360 million water project with an additional Dh125 million project for distribution."