BESIX: International consortium, in partnership with Dubai Municipality, designs, builds, finances, operates and maintains a world-class waste-to-energy facility
- BESIX and its partners carry out one of the world’s largest waste-to-energy plants to be built in a single phase. The facility will process 1.9 million tonnes of municipal waste per year and produce approximately 200 MW of renewable electricity.
- The project is subject to a BOOT contract and includes financing, design, construction, and operations and maintenance of the facility for 35 years.
- On 25 March 2021, Dubai Waste Management Company (DWMC) has entered into long-term financing agreements in the amount of 900 million USD with major institutional lenders. Partners within DWMC include Dubai Holding, DUBAL Holding, Itochu, Hitachi Zosen Inova, Tech Group and BESIX.
- The facility was designed in close collaboration between Dubai Municipality, Hitachi Zosen Inova and BESIX. The construction, carried out by Hitachi Zosen Inova and BESIX, started in 2020. The facility will be fully operational in 2024.
- On behalf of Dubai Municipality, BESIX and Hitachi Zosen Inova will also be in charge of the operations and maintenance of the waste-to-energy plant for 35 years.
The project, led by Dubai Municipality, consists of a Waste-to-Energy plant, located at the former Warsan landfill site. The facility will treat 1,900,000 tonnes of municipal solid waste per year. Its size and capacity make this facility one of the largest in the world. Up to 200 MW of thermal energy recovered will be fed into the local grid.
This strategic project marks an important contribution to Dubai Clean Energy Strategy 2050 and Dubai Plan 2021 to making the Emirate one of the most sustainable cities in the world.
The agreement with Dubai Municipality includes the design and construction of the facilities, as well as financing and a 35-year operation and maintenance period on behalf of Dubai Municipality.
H.E. Eng. Dawoud Al Hajri, Director General of Dubai Municipality: “The Dubai Centre for Waste Processing is proceeding according to schedule, with His Highness Sheikh Mohammed bin Rashid Al Maktoum’s support. The strategic focus of this project is to achieve environmental protection, reduce carbon emissions, divert waste from the landfills, and contribute towards the realization of Dubai’s strategy to shift towards clean energy. Dubai Municipality is setting up an attractive environment for investors to support increased foreign direct investment.”
Pierre Sironval, Chief Operating Officer of BESIX Group: “BESIX is involved in the project in three ways: the investment, construction and operations of the plant for 35 years. We have started construction and look forward to delivering and then operating, together with Hitachi Zosen Inova and in close collaboration with Dubai Municipality, this world-leading facility. With the project, the Emirate of Dubai has once again confirmed its leading role in the field of sustainability and the environment. We would like to thank Dubai Municipality and all the partners within DWMC for their trust and excellent collaboration.”
Finance loan agreement
On 25 March 2021, Dubai Waste Management Company P.S.C., a special purpose development vehicle consisting of BESIX, Tech Group, Hitachi Zosen Inova, ITOCHU Corporation, DUBAL Holding LLC and Dubai Holding Commercial Operations Group LLC, entered into long-term project finance loan agreements in the amount of 900 million USD with Japan Bank for International Cooperation (JBIC) and private financial institutions including Société Générale Bank, KfW IPEX Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Siemens Bank and Crédit Agricole Bank. Nippon Export and Investment Insurance (NEXI) will provide the insurance for a part of the loan being provided by the financial institutions.
Construction + Operations & Maintenance
Early construction works on site started in 2020. The facility will consist of five processing lines, which will be delivered in 2023 and 2024. At the peak of the works, 2,500 workers will be deployed and the site will use up to 16 tower cranes, including the world’s largest tower cranes in order to install the equipment inside the plant.
Hitachi Zosen Inova and BESIX will also be in charge of the operations and maintenance of the plant for 35 years.
Following on the Jebel Ali water treatment plant (Dubai), the ISTP2 project (Abu Dhabi), Ajman Sewerage and the Safi water reuse station (Ajman), the recent Refuse-Derived Fuel facility (Umm Al Quwain), the Dubai Waste-to-Energy plant enables BESIX Group to make a new major contribution to the sustainable landscape of the United Arab Emirates.