Infrastructure & PPPs in UAE and Bahrain - Q2 2025 Update
- YOG INFRA
- Jul 28
- 11 min read
We have covered key developments in PPP and infrastructure across UAE and Baharain in our final insight of Q2 2025. UAE has recently attracted good interest from private sector participants to develop energy, water and urban infra proejcts in the country and we also see country-level MOUs being signed. Further, there are large platforms being established to develop large-scale infrastructure projects, notably in Abu Dhabi and Dubai; with enabling policy and regulatory support from the government authorities.
Read the key developments in Infrastructure and PPPs in UAE and Baharain in our final insight of the Q2 2025 series.
UAE
DUBAI TENDERS FIRST TWO PACKAGES OF AED 17 BN SEWERAGE TUNNELS PROJECT
Dubai Municipality kicked off the tender process for a Public-Private Partnership (PPP) developer for its AED 17.2 Bn (USD 22 Bn) Dubai Strategic Sewerage Tunnels (DSST) project. The DSST project will involve the construction of wastewater tunnels and assets across the cities of Dubai and Hatta. The municipal body is seeking a PPP developer for the first phase of the project, which covers the J1 and W packages.
The packages cover development, financing, design, engineering, procurement, supply, manufacturing, testing, construction, installation, commissioning, insurance, ownership, operation, maintenance and the hand back of packages J1 and/or W. As part of the project, two sets of deep tunnels will be built. These will end at two terminal pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali in Dubai. A conventional sewage and drainage collection system and STPs will be built in Hatta.
The project will be carried out in four stages. These will cover
The Jebel Ali Tunnels (North) and Terminal Pumping Station (TPS),
Jebel Ali Tunnels (South),
Warsan Tunnels and TPS, and
Jebel Ali Links.
The J1 package comprises Jebel Ali tunnels (North) and terminal pump stations (TPS). The tunnels will extend approximately 42km and the links will extend 10km. The W package, which stands for Warsan, comprises 16km of tunnels, TPS and 46km of links.
EOI RECEIVED FOR DEVELOPMENT OF 7TH PHASE OF THE MOHAMMED BIN RASHID AL MAKTOUM SOLAR PARK
The Dubai Electricity and Water Authority (DEWA) announced that 47 international companies are interested in developing the up to 2-GW seventh phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The proposals were submitted in an Expressions of Interest (EOI) campaign launched by Dubai Electricity and Water Authority (DEWA).
The Phase VII project will add between 1.6 GW and 2 GW of solar photovoltaic (PV) capacity along with a 1-GW battery energy storage system (BESS) set to provide six hours of storage capacity. The project will be developed under the Independent Power Producer (IPP) model, with its commissioning set to take place between 2027 and 2029.
The seventh phase will be one of the world’s most significant solar-plus-storage projects, generating 4.5 terawatt-hours of clean electricity annually by 2030. Its impact will be profound as it will curb reliance on natural gas, eliminating the need to burn 36 billion cubic feet annually and reducing carbon emissions by eight million tonnes each year. This will boost the share of clean energy in the Emirate’s energy mix to 34%, surpassing the initial target of 25%.
TAQA SECURES 24-YEAR POWER DEAL FOR UAE’S ENERGY EXPANSION
Abu Dhabi-based utility firm Taqa has signed a 24-year power purchase agreement (PPA) with Emirates Water and Electricity Company (EWEC) to develop the 1GW Al Dhafra Open-Cycle Gas Turbine (OCGT) project. The agreement grants Taqa full ownership of the project, with responsibility for its operation and maintenance. The Taqa Transmission subsidiary will also oversee the development of advanced power grid infrastructure to integrate new generation capacity into the UAE’s electricity network. This initiative is aligned with the recently announced EWEC-Masdar project, which aims to provide renewable energy 24/7, positioning the UAE as a leader in low-carbon energy infrastructure.
The Al Dhafra facility will contribute up to 1GW of base-load power daily, making it the largest combined solar and battery energy storage system (BESS) in the world. The agreement is part of a AED 36 Bn (AED 9.8 Bn) investment plan for Abu Dhabi’s energy supply infrastructure, with 75% allocated to renewable and conventional power generation and the remaining 25% invested in grid expansion. The grid infrastructure will be incorporated into the regulated asset base and will receive a regulated return. The UAE continues to expand its renewable energy capabilities, reaffirming its commitment to sustainable and low-carbon energy infrastructure on a global scale.
ADFD INAUGURATES 6.3 MW SOLAR PLANT IN COMOROS TO DRIVE CLEAN ENERGY TRANSITION AND ECONOMIC GROWTH
The Abu Dhabi Fund for Development (ADFD) has officially inaugurated a 6.3-megawatt solar power plant in the Comoros, funded with AED 25.7 Mn (USD 7 Mn), reinforcing the UAE’s commitment to global clean energy expansion and sustainable development. The new facility, which will supply reliable electricity to Moroni and surrounding areas, is expected to reduce dependence on fossil fuels, lower carbon emissions, and improve overall living standards. The plant is integrated into the national grid through medium-voltage lines, enhancing power reliability across the region.
This initiative strengthens bilateral ties and showcases the UAE’s dedication to enabling renewable energy access in partner countries. The project directly supports several UN Sustainable Development Goals, including SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals), aligning with the UAE’s global development strategy and climate ambitions.
EWEC, TAQA, ENGIE, AND SUMITOMO CORPORATION SIGNS AGREEMENT FOR SHUWEIHAT 1 (S1) POWER PROJECT
EWEC (Emirates Water and Electricity Company), UAE, announced the signing of a Power Purchase Agreement (PPA) for the Shuweihat 1 (S1) power project. In support of EWEC’s strategic acceleration of Abu Dhabi and the UAE’s energy transition, under the terms of the PPA, S1 will be reconfigured from a cogeneration power and water desalination facility to a power plant only, providing flexible reserve supply to support the increased integration of renewable and clean energy sources.
The PPA was signed with the consortium of Abu Dhabi National Energy Company (TAQA), ENGIE and Sumitomo. Located in Al Dhafra region, approximately 250 kilometres from Abu Dhabi City, S1 has been in operation, under a 20-year Power and Water Purchase Agreement which was due to conclude in 2025.
Under the new PPA, and in support of EWEC’s decoupling of power and water supply, the water desalination, fuelled by natural gas, will be decommissioned. S1 will then be converted to a natural gas-fired open-cycle power plant only, providing up to 1.1 gigawatts of flexible reserve supply for 15 years, with commercial operations beginning from 2027.
The reconfiguration and extension of S1 facilitates the UAE’s transition towards net zero whilst also maintaining reliability during peak power demand periods. The flexible operation of the plant in support of increased renewable and clean energy sources also ensures minimal carbon emissions. The extension reinforces EWEC’s continued efforts to diversify Abu Dhabi and the UAE’s total energy mix. By 2030, EWEC is aiming to provide more than 50 % of Abu Dhabi’s electricity from renewable and clean energy sources.
DUBAI’S RTA OPENS 116 PRIVATE SECTOR TENDERS UNTIL END OF 2025
Dubai’s Roads and Transport Authority (RTA) has unveiled 116 tenders and auctions to drive public-private collaboration across the emirate. Open until the end of 2025, these tenders invite participation from local and international companies, including small and medium enterprises (SMEs), to contribute to key infrastructure, IT, and service projects. This strategic move aligns with Dubai’s broader vision to foster economic growth and innovation through seamless Public-Private Partnerships (PPP).
The tenders cover a diverse range of sectors, highlighting the RTA’s commitment to improving urban mobility, expanding technological capabilities, and enhancing public services. This initiative not only creates growth opportunities for private companies but also supports Dubai’s long-term developmental goals under the Public-Private Partnership Strategy 2024–2026.
INTEGRATED TRANSPORT CENTRE (ABU DHABI MOBILITY) ADVANCES SUSTAINABLE MOBILITY WITH STRATEGIC INVESTMENT IN ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
The Integrated Transport Centre (Abu Dhabi Mobility), an affiliate of the Department of Municipalities and Transport, has announced a significant investment in electric vehicle infrastructure. A number of operators have been appointed to manage EV charging stations under Public-Private Partnership (PPP) contracts that cover the supply, installation, operation, and maintenance of charging stations across the capital, Abu Dhabi.
The project forms part of Abu Dhabi Mobility’s ongoing efforts to support the transition to clean mobility and reinforce the emirate’s commitment to achieving carbon neutrality by 2050. The launch of this network marks an important step towards establishing an advanced public charging infrastructure that meets the needs of sustainable transport across the Emirate, while promoting the shift to more efficient and environmentally friendly mobility solutions. The initiative also reflects Abu Dhabi Mobility’s dedication to providing innovative technology and infrastructure to facilitate electric vehicle adoption and enhance quality of life in the emirate.
The first phase of the project includes the installation of 1,000 new charging stations at 400 strategic locations across Abu Dhabi Island, the Al Ain region and the Al Dhafra region, supported by a phased plan to increase the number of stations annually in line with demand. The new stations will operate under the unified brand name Charge AD, with standardised charging tariffs set at AED 0.70 per kilowatt-hour for AC chargers and AED 1.20 per kilowatt-hour for fast DC chargers.
UAE’S GRIDORA SIGNS LANDMARK AED 35 BN MOU WITH ADPIC TO BOOST TRANSPORT INFRASTRUCTURE
Gridora, the new infrastructure platform established by ADQ, IHC and Modon Holding, has signed its first Memorandum of Understanding (MoU) with Abu Dhabi Projects and Infrastructure Centre (ADPIC) for the delivery of high-impact transport infrastructure projects. Through this agreement, Gridora and ADPIC will establish a framework for potential collaboration in relation to supporting the development, planning and implementation of strategic infrastructure projects within the Emirate of Abu Dhabi.
The initial focus of the MoU will be to establish a working committee to explore potential opportunities and identify pilot projects, activities and initiatives Gridora could undertake. These would be considered from several projects ADPIC aims to deliver within the emirate, with the centre having been mandated to implement projects with an estimated value of at least AED 35 Bn (USD 9.45 Bn).
DEWA ADDS 800 MW OF CLEAN ENERGY PRODUCTION CAPACITY TO ITS ENERGY MIX IN 2025
Dubai Electricity and Water Authority (DEWA), announced that the total production capacity of the Mohammed bin Rashid Al Maktoum Solar Park has increased to 3,860 megawatts (MW), using photovoltaic (PV) solar panels and concentrated solar power (CSP) technologies. Since the beginning of 2025, DEWA has added 800MW from the solar park’s sixth phase. Clean energy now constitutes around 21.5% of DEWA’s total energy production capacity.
The Mohammed bin Rashid Al Maktoum solar park is key project to realise this vision and achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, which aim to provide 100% of the emirate’s energy production capacity from clean sources by 2050. By 2030, the solar park's production capacity will reach 7260 MW, with clean energy making up 34% of DEWA’s energy mix.
EDF, KOWEPO WIN 1.5-GW AL ZARRAF SOLAR PROJECT IN ABU DHABI
EDF Power Solutions and Korea Western Power Co., Ltd. (KOWEPO) have signed a deal to develop the 1.5-GW Al Zarraf solar PV project in Abu Dhabi. The project was awarded to the international consortium following a competitive bidding process, for which 16 companies and consortia were qualified.
Zarraf Solar will be developed as an Independent Power Producer (IPP) project in the Al Zarraf area of the Al Dhafra Region. When operational, the solar plant will generate electricity for roughly 160,000 homes annually. A consortium of EDF Renewables and KOWEPO is one of the three bidders competing for the development of the 1.5-GW Khazna solar PV project in Abu Dhabi.
ADIO, ADPIC STRATEGIC PARTNERSHIP TO ADVANCE PPP DELIVERY IN ABU DHABI
The Abu Dhabi Investment Office (ADIO) and the Abu Dhabi Projects and Infrastructure Centre (ADPIC) have signed a strategic partnership agreement to establish a collaborative operating model that supports the planning, structuring, and procurement of Public-Private Partnerships (PPPs) for infrastructure projects across the Emirate.
The partnership introduces a unified operating model that connects the pipeline of infrastructure projects with seamless transaction execution. This integrated approach is designed to improve coordination, enable the early identification of PPP opportunities, streamline approval processes, and embed stronger accountability and governance throughout the project lifecycle. The partnership introduces a unified operating model that connects the pipeline of infrastructure projects with seamless transaction execution. This integrated approach is designed to improve coordination, enable the early identification of PPP opportunities, streamline approval processes, and embed stronger accountability and governance throughout the project lifecycle.
EMIRATES NBD PARTNERS WITH SIEMENS ON GREEN INFRASTRUCTURE FINANCING
Emirates NBD has partnered with Siemens to announce an innovative finance and resourcing agreement aimed at accelerating the funding of future green infrastructure projects in the UAE. The agreement is the culmination of an extensive and strategic collaboration that synergises technology, sustainability, and finance, and is fully aligned with the UAE’s Net Zero by 2050 Strategic Initiative. Emirates NBD was approached by Siemens to develop and design the administrative, technical and structural aspects of the agreement. This collaboration resulted in the creation of a unique credit framework, complemented by an innovative suite of financing tools.
These resources will support green infrastructure projects from installation through their entire lifecycle, including decarbonization efforts.
SHARJAH INAUGURATES FIRST-EVER SOLAR POWER PLANT, A 60 MWP PROJECT BY EMERGE AND SNOC
Sharjah has officially inaugurated its first solar power plant, “SANA,” a 60 megawatt-peak (MWp) ground-mounted solar photovoltaic (PV) facility developed through a joint venture between Emerge—a partnership between Masdar (Abu Dhabi Future Energy Company) and EDF—and the Sharjah National Oil Corporation (SNOC).
The project marks a major step in Sharjah’s clean energy transition and will directly power SNOC’s operations, with surplus electricity exported to the Sharjah Electricity, Water and Gas Authority (SEWA). The initiative is expected to avoid approximately 66,000 tons of carbon dioxide emissions annually, reinforcing the emirate’s commitment to sustainability and energy resilience. The SANA solar plant underscores the UAE’s commitment to achieving its Net Zero by 2050 target and highlights the growing role of public-private partnerships in driving the country’s renewable energy ambitions.
FIRMS SIGNS USD 205 MN FINANCING AGREEMENT FOR GCC POWER GRID INTERCONNECTION
Abu Dhabi Fund for Development (ADFD) has signed a financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) to support the expansion of the GCC power grid interconnection with the UAE’s national grid. Valued at AED 752 Mn (USD 205 Mn), the agreement aims to strengthen regional energy security and catalyse power exchange between the UAE and other GCC member states.
The project includes the construction of a 400kV double-circuit overhead transmission line extending 96 kilometres to connect the Al Silaa substation in the UAE with the Salwa substation in Saudi Arabia. It also involves the expansion of three key substations in Gonan, Al Silaa, and Salwa, and the installation of upgraded 400kV switchgears, circuit breakers and reactors. The project will also oversee the development of advanced protection and control systems, improving grid efficiency and reliability.
The project aims to strengthen the interconnectivity between the UAE and GCC power grid, enhancing regional energy resilience and enabling broader economic and developmental integration. It also aligns with the UAE Energy Strategy 2050, which aims to establish an energy system that is efficient and sustainable, contributing to long-term national economic growth.
BAHRAIN
EWA RECEIVES BIDS FOR 66KV SUBSTATION PROJECTS
Electricity and Water Authority (EWA), Bahrain received the bidders Proposals for the construction of 66kV Substations across various locations. Following are the three Bidders Submitted the proposals:
Grid Solutions – BHD 31.36 Mn (USD 83.01 Mn)
NESMA – BHD 69.55 Mn (USD 184.49 Mn)
Alfanar – BHD 93.08 Mn (USD 246.64 Mn)
As per the tender notification, EWA proposes to launch a project for establishment of a new 66kV Substations in order to meet the growing demand in different areas in Kingdom of Bahrain. The 66kV Substation Switchgear and Systems Works is one of the Project work packages intended to be executed through international limited tender.
The scope of this tender includes Design, manufacturing, supply, transportation, erection, testing and commissioning of 66kV substations includes substations switchgear, Control, Protection and ICS, Telecom systems and associated substation cabling etc.
BAHRAIN RECEIVES COMMERCIAL BIDS FOR 44 MW SOLAR PV PROJECT
The Electricity and Water Authority (EWA), Bahrain announced the bidders prices for the establishment of a 44 MWp Solar Photovoltaic (SPV) Power Plant.
Almoayyed Solar Company – BHD 9.14 Mn (USD 24.24 Mn)
TBEA Xinjiang Sunoasis Company Limited – BHD 12.03 Mn (USD 31.89 Mn)
As per the tender notification, the Electricity and Water Authority (EWA) has intended to establish a Minimum of 44 MWp solar power plant in the Campus of University of Bahrain for generating approximately 75 GWh per year. The tender for construction works of the Project will be implemented on Turnkey basis which includes Engineering, Design, Manufacturing, Supply of materials, Installation, Testing & commissioning and Civil & Electromechanical works.
List of key transactions - UAE and Bahrain Q2 2025
Source: YOG INFRA analysis
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