UAE's Dubai mulls privatization of power, water sectors

18:57, January 12, 2010      

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Authorities of Dubai, a member of the seven-strong federation United Arab Emirates (UAE), would employ advisors for its plan to privatize the emirate's power generation and water desalination sectors, a local business journal reported Tuesday.

People walk in front of the Burj Dubai, the world's tallest tower, in Dubai January 3, 2010. Started at the height of the economic boom and built by some 12,000 labourers, the world's tallest building will open on Monday in Dubai as the glitzy emirate seeks to rekindle optimism after its financial crisis. (Xinhua/Reuters Photo)

The move was aimed at promoting Dubai's competitiveness, Arabian Business quoted Dubai Electricity and Water Authority (DEWA) as saying in a statement.

DEWA was "working to attract advisory services offers for privatization," the statement said.

Saeed Mohammed Al Tayer, managing director and CEO of DEWA, said he was keen to get the private sector involved in power and water generation.

Both UAE and foreign companies would be encouraged to invest in the industries, while strict legislation would control future pricing and regulations relating to emissions, he added.

According to Al Tayer, DEWA would continue to complete its water and power projects while the process of privatization is implemented. He did not give a date for when privatization would happen.

"Since the introduction of an Independent Producer of Water and Power Producer (IWPP) requires time for implementation, therefore, DEWA will continue to meet the growing needs and demand for power and desalinated water in Dubai," he said.

DEWA serves nearly 600,000 customers in Dubai, according to Arabian Business.

Source: Xinhua
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