The Dubai Electricity and Water Authority or DEWA has attracted investments of around AED40 billion ($10.9 billion) using the Independent Power and Water Producer or IPWP model, according to an official statement.
DEWA MD and CEO Saeed Mohammed Al Tayer made the announcement on Sunday, October 10, during his keynote speech at the Dubai International Public Private Partnership Conference (DIPPP).
DEWA is said to have used the IPWP model in a number of its key power projects.
The model’s key features are apparently the implementation of the directives of the leadership, adopting a successful partnership model on sound commercial foundations, full alignment with best international practices through benchmarks, and in line with the special requirements of the Emirate and the partnership subject, and adopting good governance of the model by creating the appropriate legislative framework and regulatory environment.
In rolling out the model, it is necessary to have a coherent PPP policy, strong enabling institutions, strategy, goals, initiatives, performance indicators, specific targets, a clear legal framework, cooperative risk sharing and effective implementation plans, said the statement.
This responsibility should be assigned to an independent unit that oversees the effective implementation of the model with the competent authorities.
Al Tayer also explained that the key success factors of the IPWP model that DEWA include effective implementation of good governance to ensure transparency, accountability, and the rule of law to enhance investor confidence.
Another factor is the development of an attractive regulatory, supervisory, and legislative environment.
A third factor is launching joint projects after conducting technical, economic, financial, and other feasibility studies, and seeking the assistance of specialized international houses of expertise when necessary.
Yet another is adopting the principle of achieving fair gains for both parties of the partnership, besides studying the risks and challenges and developing the necessary solutions in advance.
He also suggested the involvement of the private sector with a percentage that ensures that the government has control of the projects while giving adequate assurance to the investors.
Al Tayer also batted for awarding long-term partnership contracts according to the partnership area, which contributes to the sustainability of the partnership and getting globally competitive prices, besides following up on the implementation of the roadmap and operational plans by the top management of the government organization to ensure implementing the projects within the timelines, budgets and quality.
He also called for localization of knowledge and development of national capacities to keep pace with modern technologies necessary to sustain successful partnerships.