A joint venture between Utico Middle East and Spanish energy giant Grupo Cobra plans to build a desalination plant in Ras Al Khaimah, UAE.

The joint venture, Al Hamra Water Company, will oversee the development of the Dh719-million ($195.74 million) water desalination plant in the Al Hamra Jazeerah area of Ras Al Khaimah.

Utico Middle East, a subsidiary of Abu Dhabi-based Ghantoot Group, and Grupo Cobra signed an agreement in Dubai last week to incorporate Al Hamra Water Company, under a 60:40 partnership.

The facility will generate 22 million gallons of water a day for the emirate and neighbouring areas, according to a joint statement.

Richard Menezes, managing director of Utico Middle East, said most of the water will be directly supplied to Federal Electricity & Water Authority (Fewa).

Fewa supplies electricity and water to Ras Al Khaimah, Ajman, Umm Al Quwain, Fujairah and some east coast cities.

Construction on the facility will start next month with the plant slated to start supplying water to Fewa by June 2017 and becoming fully operational in 2018, Menezes said.

It is the first desalination plant in the region to be independently financed, which will be 80 per cent debt financed and 20 per cent liquidity, Menezes said.

Construction is expected to create 300 jobs and a further 80 permanent positions once the facility is operational, of which at least 20 per cent will be guaranteed to Emiratis, according to the statement.

A tender has been issued to supply solar panels to the facility, with 16 companies pre-qualified, Menezes said. - TradeArabia News Service