Integrated utility company Abu Dhabi National Energy Company (TAQA) has completed its previously announced AED1.7bn ($460m) acquisition of Sustainable Water Solutions (SWS).
Headquartered in Abu Dhabi, UAE, SWS offers sustainable water solutions aimed at contributing towards sustainable economic development and enhancing the quality of life.
SWS is the parent company of Abu Dhabi Sustainable Water Solutions Company (ADSWS), the sole entity responsible for wastewater collection and treatment, along with the production of recycled water in Abu Dhabi.
ADSWS operates under the regulatory framework of the Department of Energy, similar to other key sectors in TAQA’s portfolio, including power and water transmission and distribution in Abu Dhabi.
It manages an expanding network of around 13,000km of sewer pipelines and claims a water treatment capacity of approximately 1.3 million cubic meters per day across 43 plants. Furthermore, ADSWS has a regulated asset value of about AED17.5bn ($4.76bn).
SWS CEO and managing director Ahmed Al Shamsi said: “Being part of TAQA strengthens our position to ensure responsible water use and reuse, support the circular economy and promote smart growth here in the UAE and abroad.
“As stewards of sustainable water management, we are a reliable low-carbon water champion and look forward to bringing even more integrated and innovative solutions powered by cutting-edge technology and operational excellence to lead water transformation to our customers.”
Through the acquisition of SWS, TAQA will bolster its capabilities in managing water and add significant value to the company’s asset base. SWS’ offerings are said to be highly complementary to TAQA’s existing portfolio.
In addition, the deal will further improve TAQA’s secure cashflow profile and long-term earnings.
TAQA CEO and managing director Jasim Husain Thabet said: “By bringing the treated water business into TAQA, alongside our other water activities of production and transmission & distribution, we will be able to optimise the way we produce, use and reuse water.
“As a company we can now offer an even broader range of utility solutions while we continue to grow here in the UAE and internationally.”
Under the terms of the definitive agreement signed by both parties in June last year, TAQA will pay 50% of the consideration upon completion. The remaining 50% will be paid one year after the completion of the deal.
Recently, SWS signed a joint development agreement with Uzbekistan’s Ministry of Investment, Industry and Trade, and Uzsuvtaminot to develop a wastewater treatment plant in Tashkent.
The agreement signed in collaboration with Marubeni Corporation and Suez will see the construction of a plant with a capacity to produce 1.5 million cubic meters of treated water per day.
