Abu Dhabi National Energy Company PJSC (TAQA) has completed the acquisition of Sustainable Water Solutions Holding Company (SWS Holding), the company said on Wednesday. TAQA finalized the acquisition of all outstanding shares of SWS Holding for AED1.7 billion ($462.84 million).
SWS Holding owns Abu Dhabi Sustainable Water Solutions Company (ADSWS), which was established in 2005, and is the sole entity responsible for wastewater collection and treatment as well as production of recycled water in the emirate of Abu Dhabi.
SWS Holding will expand TAQA’s capabilities in managing water and is highly complementary to its existing portfolio. The transaction will add significant value to the company’s asset base and further enhances TAQA’s highly predictable and secure cashflow profile as well as its long-term earnings.
Sustainable solutions
ADSWS delivers sustainable water solutions by focusing on resource recovery and water circularity and is regulated by the department of energy, operating under the same regulatory framework as other key sectors in TAQA’s portfolio, such as transmission and distribution businesses (power and water) in Abu Dhabi. ADSWS has a growing network of approximately 13,000 km of sewer pipelines and a water treatment capacity of approximately 1.3 million cubic metres per day from 43 plants, with a regulated asset value of approximately AED17.5 billion.
Read more: Abu Dhabi’s TAQA posts $571.7 million net income in Q1 2024
Expansion plans
Building on its strengths in the UAE, SWS Holding aims to expand internationally as part of its long-term growth strategy, delivering sustainable water solutions to new markets. Recently, SWS Holding, alongside Marubeni Corporation and Suez, signed a joint development agreement with Uzbekistan’s Ministry of Investment, Industry and Trade and Uzsuvtaminot JSC to develop a wastewater treatment plant in Tashkent, which will be capable of producing 1.5 million cubic metres of treated water per day.
“By bringing the treated water business into TAQA, alongside our other water activities of production, transmission and distribution, we will be able to optimize the way we produce, use and reuse water. As a company we can now offer an even broader range of utility solutions while we continue to grow here in the UAE and internationally. Adding SWS Holding to our portfolio strongly aligns with our net zero strategy, helping to ensure water security in the UAE while minimising related greenhouse gas emissions through effective wastewater treatment and reuse,” said Jasim Husain Thabet, TAQA’s group CEO and managing director.
“Being part of TAQA strengthens our position to ensure responsible water use and reuse, support the circular economy and promote smart growth here in the UAE and abroad. As stewards of sustainable water management, we are a reliable low-carbon water champion and look forward to bringing even more integrated and innovative solutions powered by cutting-edge technology and operational excellence to lead water transformation to our customers,” Ahmed Al Shamsi, CEO and managing director of SWS Holding, said.
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