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Dewa, Acwa Power sign Dh1.76bn deal for Hassyan desalination phase two
Second phase adds 60 MIGD capacity under 30-year water purchase agreement with 60-40 ownership split.
Dubai Electricity and Water Authority signed agreements worth Dh1.76 billion ($478 million) with Acwa Power on 7 November 2026 to develop the second phase of the Hassyan seawater desalination project. The second phase will deliver 60 million imperial gallons per day of production capacity.
Ownership structure and contract terms#
Dewa will hold a 60 per cent stake in the project company under the Water Purchase Agreement and Shareholder Agreement, with Acwa Power holding the remaining 40 per cent. The project company will finance, develop, construct and operate the desalination plant. Production capacity under the 30-year Water Purchase Agreement is approximately 272,000 cubic metres per day. Saeed Mohammed Al Tayer, Managing Director and CEO of Dewa, and Mohammad Abunayyan, Founder and Chairman of Acwa Power, signed the agreements on 7 November 2026.
First phase investment and capacity#
The first phase of the Hassyan desalination plant has a capacity of 180 MIGD and required an investment of Dh3.357 billion. Dewa developed the first phase under the Independent Water Producer model, under which private-sector participants develop and operate water infrastructure. The combined capacity of both phases will reach 240 MIGD when the second phase is completed. The first phase was Dewa's first project using the Independent Water Producer structure.
Project timeline and technology#
The Hassyan complex uses seawater reverse osmosis desalination technology. Dubai's total desalinated water production capacity is expected to reach approximately 735 MIGD by 2029 when both phases are completed. The second phase will bring the Hassyan facility's total capacity to 240 MIGD upon completion. The project is part of Dubai's programme to increase desalination capacity as water demand grows.
Acwa Power partnership history#
Acwa Power has worked with Dewa for more than a decade in Dubai's power and water sectors. The project company will handle financing, construction and operation of the second phase under the 30-year water purchase agreement with Dewa. The Hassyan expansion represents Acwa Power's continued participation in Dubai's water infrastructure development.
Sources1 source across 1 domain
- khaleejtimes.comKhaleej TimesDewa and Acwa Power signed Dh1.76 billion agreements on 7 November 2026 for Hassyan desalination plant phase two, adding 60 MIGD capacity with 60-40 ownership split under 30-year water purchase agreement, first phase cost Dh3.357 billion with 180 MIGD capacity, Dubai's total desalinated water produc
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