Phase 2 of Abu Dhabi's LED road lighting PPP tender reaches financial close

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Phase 2 of Abu Dhabi's LED road lighting PPP tender reaches financial close

Abu Dhabi, UAE – 15 May 2023: The Abu Dhabi Investment Office (ADIO), in collaboration with the Department of Municipalities and Transport (DMT), today announced that Phase 2 of the emirate’s energy-efficient Road Lighting LED public-private partnership (PPP) project has reached financial close. Nojoom, a 50-50 joint venture between EDF and ENGIE, was selected to deliver this key infrastructure project in the UAE capital.

The project includes the finance, supply, installation, operation and maintenance of 133,473 LED energy-efficient luminaires in the Emirate of Abu Dhabi. Over the 12-year concession period, it will result in almost 2,400 million kWh of electricity savings, approximately equivalent to a 74 percent reduction in power consumption. With financial close reached, work will now commence.

Eng. Abdulla Abdul Aziz AlShamsi, Acting Director General of ADIO, said: “Abu Dhabi continues to effectively utilise our advanced PPP framework to deliver key infrastructure projects. We congratulate EDF and ENGIE on reaching financial close on this tender, which will begin delivering significant energy reductions across Abu Dhabi’s Road lighting during the UAE’s Year of Sustainability and ahead of hosting COP28.”

Salem Al Kaabi, Director General of Operational Affairs at the Department of Municipalities and Transport said, “The project is an excellent example of our commitment to collaborating with private entities to deliver high-quality infrastructure projects in Abu Dhabi. We congratulate EDF and ENGIE on reaching financial close on this tender, and we look forward to working with them to deliver this vital infrastructure project.”

“The Road Lighting LED PPP project highlights DMT’s adherence to the highest standards of governance, social responsibility, and environmental sustainability. The project’s successful implementation will not only result in significant energy savings but also contribute to the UAE’s Net Zero 2050 strategic initiative, further reinforcing DMT’s commitment towards sustainable development”, Al Kaabi added.

DMT played a critical role in the selection process of the winning consortium for the Road Lighting LED PPP project. After a thorough evaluation of the proposals submitted by pre-qualified bidders, EDF and ENGIE signed a partnership agreement with the DMT to deliver the project.

The project was procured in accordance with Abu Dhabi’s PPP Law and ADIO’s Partnership Projects Guidebook and Environmental, Social and Governance (ESG) Policy. EDF and ENGIE signed a partnership agreement with DMT after a thorough three-stage evaluation of the proposals submitted by pre-qualified bidders. The selected consortium will deliver the project over five phases covering smaller geographical zones across Abu Dhabi to ensure the highest efficiency and sustainability standards.

Ian Harfield, Managing Director of ENGIE Energy Solutions GCC, said: “This project perfectly showcases how public-private partnership can deliver economic gains, sustainable development and substantial decarbonisation benefits for regional cities. We are delighted with the opportunity to showcase our capabilities and look forward to leveraging our experience in global energy projects and advanced technology to deliver real value to Abu Dhabi and its residents. Further, this project helps advance The UAE Green Agenda – 2030, which among other objectives, focuses on clean energy and climate action.”

Luc Koechlin, CEO of EDF Middle East, commented: “We are delighted to have successfully reached the financial close of the Abu Dhabi Street lighting project. This key milestone would not have been possible without the full support provided by the UAE government and authorities and without the commitment shown by the project team, partners and financing organisations. Our efforts will now be concentrated on building the human capital we need with our international know-how and our partners’ local expertise. We remain committed to contributing to the Emirates’ carbon neutrality objectives by implementing concrete actions at the forefront of COP28.”   

ADIO is the central government authority for facilitating, developing and procuring infrastructure projects through Abu Dhabi’s PPP framework. Earlier in 2023, ADIO, in collaboration with Khalifa University, launched a major new PPP tender to deliver the accommodation and associated facilities for 3,250 students in the UAE capital.

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