Abu Dhabi’s Taweelah independent water project (IWP) has started commercial operation of its first phase, which is capable of treating 100 million imperial gallons of water a day (MIGD).

Construction is also an at advanced stage for the plant’s second 100MIGD phase, according to Spain’s Abengoa, which implemented, along with China’s Sepco 3, the project’s EPC contract.

The 200MIGD Taweelah IWP is being developed by ACWA Power.

Located on the Taweelah power and water generation complex 45 kilometres off Abu Dhabi, the project includes a 40MW solar PV farm.

Based on 100 per cent electricity cost, ACWA Power submitted the lowest proposal of AED8.26 per thousand imperial gallon (TIG), or roughly $0.49 per cubic metre, for the BOO scheme in 2018.

ACWA Power is the lead developer and operator, and a 40 per cent shareholder, in Taweelah IWP, with the government of Abu Dhabi through Taqa and Mubadala Development Company owning the remaining 60 per cent.

Emirates Water & Electricity Company (Ewec) is the sole offtaker of the project under a 30-year contract.

Ewec and ACWA Power reached financial close on the AED3.19bn ($869m) Taweelah IWP in October 2019.

A group of local and international financial institutions arranged the loans, which include conventional and Islamic tranches, totalling AED2.71bn.

The lenders include France’s Natixis, the UAE's Emirates NBD, Japan's Mizuho Bank, Germany's Siemens Bank, Bank Boubyan (Kuwait) and the Norinchukin Bank (Japan).

Equity contributions from shareholders and operating cashflow from pre-operations will cover the rest of the required financing.