Saudi utility giant Acwa Power has announced that it has signed a water purchase agreement worth SAR1.79 billion ($478 million) with the Dubai Electricity and Water Authority (Dewa) for the Hassyan seawater desalination project.

On completion, the project, located at the Hassyan Complex, will have a production capacity of 272,000 cu m of water per day, said the company in its filing to the Saudi bourse Tadawul.

Acwa Power will have a strategic 40% stake in the project.

Under the agreement, the scope of work includes the development, financing, construction and operation of the reverse osmosis desalination plant. The water purchase agreement has a term of 30 years.

In October 2023, Dewa and Acwa Power had signed agreements for the first phase of the Hassyan seawater desalination project, valued at approximately $914 million. This phase was planned with a capacity of 180 million imperial gallons per day.