Arcapita JV wins Saadiyat district cooling deal
Manama, February 19, 2011
A joint venture of Bahrain-based Arcapita and French energy firm Dalkia has won a major contract for a district cooling plant operation on Saadiyat island off the coast of Abu Dhabi.
The project, awarded by Tourism Development & Investment Company (TDIC), the master developer of tourism, cultural and residential projects in Abu Dhabi, will incorporate three plants, said the JV.
It will be one of the Middle East’s largest district cooling plant operations, providing a combined capacity of 50,000 tons refrigeration (177 MW), and servicing a 27 sq m area.
Dalkia and Arcapita have been awarded a 29 year concession, with responsibility for the design, build, finance, operation and maintenance of the plants.
These will provide cooling to the hotels in the Saadiyat Beach District, including the Park Hyatt Abu Dhabi Hotel and Villas, and St Regis Saadiyat Island Resort, both of which are due to open later this year, in addition to the Saadiyat Marina Apartments and Saadiyat Cultural District, comprising the Zayed National Museum, Guggenheim Abu Dhabi, Louvre Abu Dhabi and Performing Arts Centre.
“The awarding of contracts for the cooling plants is an important step forward in the infrastructure development of Saadiyat, as we prepare for the opening of the island’s first hotels later this year, and look forward to further projects coming on line in the near future,” said Andrew Seymour, director of infrastructure, TDIC.
“TDIC’s objective in the cooling element of Saadiyat’s infrastructure was to develop a strategy that will provide cost-effective, efficient cooling services across the 1.6 million m2 built up area, while managing the issues of water conservation and environmental output. Dalkia and Arcapita’s expertise in district cooling made them the most appropriate fit for Saadiyat’s cooling needs,” he added.
“District cooling technology makes long-term, sustainable and environmentally-aware cooling strategies far more achievable, especially in the Middle East, one of the world’s most challenging climates,” said Olivier Barbaroux, chairman of Dalkia.
“Dalkia’s expertise in overall energy management will contribute significantly to reducing Saadiyat Island’s environmental impact, including the use of sewage-treated water in the cooling process. We welcome the opportunity to create a model cooling environment for Saadiyat, which is set to become an important new leisure, commercial and residential destination.”
Atif A Abdulmalik, chief executive of Arcapita, said: “The addition of this very prestigious project into our portfolio of district cooling investments is excellent news for our investors. It will also give us good positioning as we proceed in our partnership with Dalkia to build out further projects in this region.”
During the concession period, Arcapita will provide the majority of financing for the project, while Dalkia which manages 819 energy networks across 42 countries worldwide, will own 15 per cent of the joint venture, perform engineering works, manage the construction of the plants and operations, a statement said.
The companies will recover their investment by charging each of the island’s properties for the provision of cooling. Both organisations have extensive experience in the Middle East. – TradeArabia News Service
More Construction & Real Estate Stories
- Plaza Premium wins Abu Dhabi Airports contract
- Engineering experts attend Autodesk conference
- Dubai $114m freehold property in big demand
- Heavy Equipment enters Qatar market
- Bahrain market to get $15.8m facelift
- Jacky’s unveils new 3D printers
- Technip wins $400m Kuwait PMC contract
- Arab investors eyeing Turkish property
- Arabtec denies Drake merger speculation
- Saudi's ACWA signs $472m sukuk financing