Abu Dhabi to award Khazna solar IPP contract
11 March 2025
Register for MEED’s 14-day trial access
Abu Dhabi state utility and offtaker Emirates Water & Electricity Company (Ewec) is expected to award the contract to develop the emirate’s fourth utility-scale solar photovoltaic (PV) project in the second quarter of this year.
French utility developer and investor Engie submitted the lowest bid for a contract to develop the Khazna solar independent power producer (IPP) project, also known as PV4, in October last year.
The solar power PV plant will have an installed capacity of 1,500MW.
MEED reported in October that Engie had offered a levelised cost of electricity (LCOE) of AEDfils 5.35502 ($c1.459) a kilowatt-hour (kWh) for the contract, beating by about 3% the second-lowest offer made by a team of China’s Jinko Power and Japan’s Jera of AEDfils 5.54126/kWh.
A team of France’s EDF Renewables and its partner, Korea Western Power Company (Kowepo), emerged with the highest offer of AEDfils 5.86311/kWh.
Ewec opened the bids on 30 October.
A transaction advisory team comprising UK-headquartered Ashurst and Alderbrook Finance and Norwegian engineering services firm DNV is advising Ewec on the 1,500MW Khazna IPP scheme.
Solar energy is integral to achieving Abu Dhabi’s target of producing nearly 50% of its electricity from renewable and clean energy sources by 2030.
In April last year, Ewec awarded the contract to develop PV3, the 1,500MW Al-Ajban solar IPP, to a team led by EDF Renewables and including Kowepo.
In 2020, a team comprising EDF Renewables and Jinko Power won the contract to develop the 1,500MW Al-Dhafra solar PV scheme, which was inaugurated last year.
In 2016, a team of Japan’s Marubeni and Jinko Power won the contract to develop and operate Abu Dhabi’s first utility-scale solar PV project in Sweihan, the 934MW Noor Abu Dhabi IPP.
Like the first three schemes, the Khazna solar PV project will involve the development, financing, construction, operation, maintenance and ownership of the plant and associated infrastructure.
The successful developer or developer consortium will own up to 40% of the entity, while the Abu Dhabi government will retain the remaining equity.
The developer will enter into a long-term power-purchase agreement with Ewec.
Once fully operational, the Khazna solar PV, along with Noor Abu Dhabi, the Al-Dhafra solar PV and Al-Ajban solar PV, will raise Ewec’s total installed solar PV capacity to 5.5GW and collectively reduce carbon dioxide emissions by more than 8.2 million metric tonnes a year by 2027.
In January, Ewec issued the request for proposals for a contract to develop the emirate’s fifth solar PV scheme in Al-Zarraf, with a bid deadline set for Q2 2025.
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDF
Chinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
|
> AGENDA 1: Chinese firms dominate region’s projects market
> AGENDA 2: China construction at pivotal juncture
> UPSTREAM 1: Offshore oil and gas sees steady capex
> UPSTREAM 2: Saudi Arabia to retain upstream dominance
> DIRIYAH: Diriyah CEO sets the record straight
> SAUDI POWER: Saudi power projects hit record high
> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector
> EGYPT: Egypt battles structural issues
> GULF PROJECTS INDEX: Gulf hits six-month growth streak
> CONTRACT AWARDS: High-value deals signed in power and industrial sectors
> ECONOMIC DATA: Data drives regional projects
|
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
-
Oman awards $2.3bn water services contract30 June 2026
-
Gulf aviation’s toughest test since the pandemic30 June 2026
-
-
Read the July 2026 MEED Business Review30 June 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
On-site work starts for $5.4bn gas project in Algeria
1 July 2026
On-site work has started for the $5.4bn gas project in Algeria’s Illizi South block, days after a key meeting between Algeria’s Oil and Gas Minister Mohamed Arkab and the chief executive of the Saudi company Midad Energy, Sheikh Abdulelah Bin Mohammed Bin Abdullah Al-Aiban.
The total investment of about $5.4bn will be fully financed by Midad Energy, including approximately $288m allocated to the exploration phase.
It is being developed in partnership with Algeria’s national oil and gas company Sonatrach.
Structured under Algeria’s Hydrocarbon Law No. 19-13, the agreement spans 30 years, with a 10-year extension option. It includes a seven-year exploration phase.
The initial exploration phase is worth $288m and will involve 2D and 3D seismic exploration as well as drilling more than 13 appraisal wells, according to a report by the local news service Algerie360.
The second phase, with an investment value of approximately $5.1bn, will involve drilling approximately 60 wells and constructing four natural gas compression units.
The project is projected to produce a cumulative total of 125 billion cubic metres of natural gas and 204 million barrels of liquid hydrocarbons over 30 years.
This will include 103 million barrels of liquefied petroleum gas and 101 million barrels of condensate.
Midad Energy has also stated its intention to further expand its investment in Algeria’s oil and gas industry and explore new joint investment opportunities with Sonatrach.
Algeria’s president, Abdelmadjid Tebboune, signed a presidential decree ratifying the development agreement in March.
Presidential Decree No. 26-113 was issued on 8 March 2026 and underpinned by Articles 91-7 and 141.
It approved a contract signed in Algiers on 13 October 2025 between Sonatrach and Midad Energy.
The contract granted both companies the rights to explore and exploit hydrocarbons in the Illizi South area. Algeria’s National Agency for the Valorisation of Hydrocarbon Resources (Alnaft) announced the contract award on 11 October 2025.
The block is located about 100 kilometres south of In Amenas, which was raided by Al-Qaeda-linked terrorists in 2013, leading to a hostage crisis.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17505309/main.jpg -
Oman awards $2.3bn water services contract
30 June 2026
Oman Water & Wastewater Services Company (Nama Water Services) has awarded a $2.28bn contract to a consortium led by French utility firm Suez to operate and maintain water and wastewater services in parts of the sultanate.
In a statement, the operator said the 15-year performance-based contract covers Muscat and the North Sharqiyah and South Sharqiyah governorates, known as Cluster 1. The area is home to approximately 2.3 million people, representing about 43% of Oman’s population.
The consortium also includes local firms National Trading Company and National Energy Centre, a local utility development and infrastructure company. It will deliver the contract through a dedicated company, National Sustainable Water Alliance.
According to Suez, the contract is the company’s largest ever in the Middle East.
The scope includes the operation and maintenance of 240 wells and 10,700 kilometres of water pipelines that distribute 470,000 cubic metres a day (cm/d) of drinking water. It also covers the refurbishment and upgrading of four desalination plants and the operation of more than 400,000 smart water meters.
The wastewater package includes the operation and maintenance of 22 wastewater treatment plants with a combined treatment capacity of 280,000 cm/d. It also covers about 3,000km of sewer networks, 400km of treated effluent networks, and the installation and operation of new wastewater house connections.
The contract includes 33 key performance indicators that will determine the consortium’s remuneration. These include reducing water losses from 34% to 11% by 2040, maintaining a continuous 24-hour water supply and improving preventive maintenance to extend the lifespan of water assets.
The contract also includes a capacity-building programme to develop operational and management skills. Suez said the project will target more than 83% Omanisation in support of the government’s Vision 2040 objectives.
Under the agreement, Nama Water Services will retain responsibility for strategic oversight and regulation, while the consortium will manage day-to-day operations.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492322/main.jpg -
Gulf aviation’s toughest test since the pandemic
30 June 2026
Commentary
Colin Foreman
EditorThe conflict that erupted on 28 February has tested Gulf aviation more severely than any event since the Covid-19 pandemic. Yet the sector’s response has revealed both its vulnerability and its underlying resilience in equal measure.
The scale of the disruption has been severe. Between 28 February and 5 March alone, more than 15,000 flights were cancelled across seven major regional airports. Jet fuel prices are expected to average $152 a barrel this year, almost 70% above 2025 levels, while the International Air Transport Association now forecasts global airline net profit of $23bn in 2026, roughly half its earlier projection.
For Gulf hub carriers, whose business models depend on stable long-haul routings and transfer traffic, the financial hit has been unavoidable.
The sector’s response has revealed both its vulnerability and its underlying resilience
What is striking, however, is the speed and confidence of the recovery. Etihad is already operating at 90% of pre-war capacity, with fares back at pre-war levels and no plans to discount. Emirates, despite flying at just 58% of its capacity in March, posted a record annual profit and announced a 20-week salary bonus for staff. Riyadh Air pressed ahead with five new destinations in June. Dubai and Riyadh are together preparing to award tens of billions of dollars in airport construction contracts before the year is out.
The pattern is consistent across tourism, too. Hotel and resort construction contracts in the GCC have already surpassed last year’s full-year total, and sovereign entertainment projects such as the Sphere Abu Dhabi are being formalised mid-conflict. Governments are making clear that their long-term infrastructure ambitions are not contingent on short-term demand.
The coming months will determine how quickly international airline confidence, and the passengers that follow it, returns to the Gulf. The signals from within the region point firmly in one direction.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492201/main.gif -
DP World and Bahraini firm break ground on Jafza facility
30 June 2026
Dubai-based ports operator DP World and Lintara Properties, the real estate development arm of Bahrain-headquartered Arcapita Group Holdings, have commenced construction of a new 20,000-square-metre (sq m) build-to-suit logistics facility at Jebel Ali Free Zone (Jafza) in Dubai.
The Grade A asset is being developed by Lintara Properties and will be operated by DP World as part of its integrated, end-to-end supply chain offering in the region.
The project is slated for completion in Q1 2027.
The facility will provide high-clearance warehousing, temperature-controlled zones, dedicated dangerous goods storage, office accommodation and related operational support amenities.
The latest announcement follows Arcapita’s agreement last week with US-based firm Hines to establish an investment platform focused on industrial and logistics real estate assets across the GCC.
The initiative will be supported by Lintara Properties.
Arcapita has also signed an agreement with Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, to deliver a 1.4 sq m built-to-suit logistics complex at King Salman Energy Park (Spark) in Saudi Arabia.
The project will feature a 43,000 sq m temperature-controlled Grade A warehouse; more than 3,000 sq m of office space and staff amenities; 5,300 sq m dedicated to chemical storage; and an open yard spanning about 1.2 million sq m.
Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, and automation and robotics.
Lintara Properties was formally launched in October last year as a dedicated real estate asset management, development and investment advisory firm.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17491690/main.jpg -
Read the July 2026 MEED Business Review
30 June 2026
Download / Subscribe / 14-day trial access The events that unfolded from 28 February delivered the Gulf aviation sector its toughest test since the Covid-19 pandemic.
Missile and drone attacks exposed the fragility of one of the region’s most vital economic engines, triggering unprecedented disruption. In just one week, more than 15,000 flights were cancelled across seven major Gulf airports, leaving over 1.5 million passengers stranded and sending shockwaves through global travel networks.
While the Gulf's national airlines have largely restored services, many international carriers remain absent, highlighting the lasting impact of the crisis.So what does this mean for the future of Gulf aviation? In the July issue of MEED Business Review, MEED editor Colin Foreman examines how the industry responded under extraordinary pressure – and why the crisis revealed not only its vulnerabilities, but also the remarkable resilience that will shape its next chapter.
July’s market focus is on the Levant, and finds the region’s three markets – Jordan, Lebanon and Syria – recovering at different speeds and from very different starting points.
This edition also includes a tourism report as the first signs of recovery begin to emerge in Dubai, and the region presses ahead with tourism projects.
In the latest issue, we speak to EtihadWE about its roadmap for future projects, examine why the Mena projects market continues to show remarkable resilience despite regional conflict, and investigate whether Big Tech is delivering on its data centre ambitions.
We also explore the multibillion-dollar opportunity emerging from the region’s evolving retirement savings market and discover how Aramco's citizen developers are accelerating digital transformation from within.
We hope our valued subscribers enjoy the July 2026 issue of MEED Business Review.
Must-read sections in the July 2026 issue of MEED Business Review include:
> AGENDA: Gulf aviation ambitions face uncertain future
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitionsINDUSTRY REPORT:
Tourism investment
> Dubai eyes tourism sector recovery
> GCC presses ahead with tourism projects> INTERVIEW: EtihadWE prepares roadmap for future projects
> PROJECTS MARKET: Mena project momentum holds despite conflict
> DATA CENTRES: Big Tech falls short on data centre promise
> SAVINGS: Retirement creates multibillion-dollar opportunity for region
> LEADERSHIP: Aramco’s citizen developers accelerate digital change
> INTERVIEW: Samsung E&A’s hydrocarbons business rooted in Mena
> LEVANT MARKET FOCUS:
> COMMENT: Levant recovers in three speeds
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resources
> DATABANK: Jordan faces fresh round of challenges> MEED COMMENTS:
> UAE clears the path for recovery
> Water tariffs near their floor
> Petrofac seeks to reclaim lost ground
> The UAE’s eastern pivot> GULF PROJECTS INDEX: Gulf index extends growth streak into 15th month
> MAY 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The price of permanent risk
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17490904/main.gif