Dubai to develop $1.1 billion energy from waste facility

DUBAI (Reuters) - Dubai Holding, the investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, said on Monday it had partnered with five firms to develop a 4 billion dirham ($1.1 billion) energy-from-waste facility.

The consortium consists of Dubal Holding, Switzerland-headquartered Hitachi Zosen Inova, Japan’s ITOCHU Corporation, Belgium’s BESIX Group and local construction firm Tech Group, Dubai Holding said in a statement.

The build and operate project has a 35-year concession period with the Dubai municipality, the statement said.

“The facility will treat 5,666 tonnes of municipal solid waste produced by Dubai per day,” it said, adding that it would generate energy by processing 1.9 million tonnes of waste per year.

Project finance loan agreements worth $900 million have been finalised with Japan Bank for International Cooperation and financial institutions including Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

($1 = 3.6728 UAE dirham)

Reporting by Hadeel Al Sayegh; Editing by Edmund Blair