EWEC, ACWA Power Sign Deal for Abu Dhabi Desalination Facility

FILE PHOTO: General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
FILE PHOTO: General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
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EWEC, ACWA Power Sign Deal for Abu Dhabi Desalination Facility

FILE PHOTO: General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo
FILE PHOTO: General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo

The Emirates Water and Electricity Company and Saudi Arabia’s ACWA Power have signed the water purchase agreement for the world’s largest sea water reverse osmosis desalination plant to be constructed at Taweelah Power and Water Complex, 50 km north of Abu Dhabi, at a cost of up to $900 million.

The Taweelah IWP will be the first stand-alone independent water project in Abu Dhabi.

Emirates Water and Electricity Company had awarded the project to ACWA Power in January 2019.

The project, when constructed, will set a world record by utilizing the lowest amount of energy per gallon of desalinated water produced.

“Our decision to bid for the Taweelah IWP demonstrates our confidence in the Emirates Water and Electricity Company as a reliable partner and confirms our commitment to contribute to the development of the United Arab Emirates by increasing our participation in the power generation and water desalination sectors,” said President and CEO of ACWA Power Paddy Padmanathan.

“Through the Taweelah IWP and the enabling environment provided by Abu Dhabi, we are proud to be setting new global bench marks in both the cost of desalinated water and the energy consumed in producing that water.”

Following the final award, construction of the project has started with the completion expected in October 2022. The plant is expected to deliver 909,200 cubic meter of water per day to support the industries and the community at Al Taweelah and the surrounding areas. The plant will also play a role in catering to Abu Dhabi’s peak water demand, which is expected to rise by 11 percent between 2017 and 2024.

“This is an especially significant project, not only because of its scale but also in its role in securing cost-effective and energy efficient potable water supply for Abu Dhabi,” said Chief Investment Officer of ACWA Power Rajit Nanda.

“This project is yet another testament to ACWA Power living its mission of reliably delivering electricity and desalinated water at the lowest possible cost.”



Gold Gains on Softer Dollar as Investors Weigh Trump Tariff Impact

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Gains on Softer Dollar as Investors Weigh Trump Tariff Impact

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices rose on Tuesday, helped by a softer US dollar and inflationary risks posed by President-elect Donald Trump's potential tariff policies, which could influence the pace of Federal Reserve monetary policy easing this year.

Spot gold was up 0.3% to $2,668.79 per ounce as of 1200 GMT. US gold futures gained 0.1% to $2,682.30.

"Gold prices are benefiting from reports that the incoming Trump administration is considering a gradual implementation of tariff increases to mitigate their impact on inflation," said Ricardo Evangelista, senior analyst at ActivTrades, referring to a Bloomberg report.

"This news led to a slight decline in US Treasury yields and a weakening of the dollar."

The dollar index fell 0.3% from a more than two-year high hit in the last session as traders scaled back US rate cut bets for 2025 after a strong jobs report. A softer dollar makes gold more affordable for buyers using other currencies, Reuters reported.

Investors are looking out for US Producer Price Index (PPI) data at 1330 GMT and Consumer Price Index (CPI) numbers due on Wednesday. A Reuters poll of economists gives a median forecast for an annual rise in CPI of 2.9%, up from November's 2.7%.

Also due is US retail sales on Thursday for further insights into the economy and the Fed's 2025 policy trajectory.

"If inflation increases again based on Trump´s spending policy, we may even see no cuts at all in the mid-term," said Henrik Marx, head of precious metals trading at Heraeus Precious Metals Germany.

Bullion is used as a hedge against inflation, although higher interest rates reduce the non-yielding asset's appeal.

Elsewhere, spot platinum was down 0.4% to $949.80.

"We look for platinum to be under-supplied by 500,000 ounces, or 6.4% of demand, in 2025," UBS said in a note.

Spot silver firmed 0.5% to $29.75 per ounce and palladium climbed 0.5% to $943.70.