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Second phase of Abu Dhabi’s LED road lighting PPP tender completes financing

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ABU DHABI – The Abu Dhabi Investment Office (ADIO), in partnership with the Department of Municipalities and Transport (DMT), announced today that the second phase of the emirate’s energy-efficient road lighting LED public-private partnership (PPP) project has closed with its financial targets.

Nojoom, a 50-50 joint venture between EDF and ENGIE, has been selected to deliver this important infrastructure project in the UAE capital.

The project includes the finance, supply, installation, operation and maintenance of 133,473 LED energy-saving lamps in Abu Dhabi. Over the 12-year concession period, nearly 2.4 billion kWh of electricity will be saved, equivalent to a reduction in electricity consumption of approximately 74%. Work will begin now, as finances are nearing agreement.

Abdulla Abdul Aziz AlShamsi, Acting Director General of ADIO, said: “Abu Dhabi continues to effectively utilize our advanced PPP framework to deliver critical infrastructure projects. We congratulate EDF and ENGIE on the financial close of this tender, which will start providing vital energy to reduce Abu Dhabi’s road lighting ahead of the UAE Year of Sustainable Development and hosting COP28.”

Salem Al Kaabi, Director General of Operations at DMT, said: “This project is a great example of our commitment to partnering with private entities to deliver high-quality infrastructure projects in Abu Dhabi. We congratulate EDF and ENGIE on the financial success of this tender We look forward to working with them to deliver this important infrastructure project.”

The road lighting LED PPP project highlights DMT’s commitment to the highest standards of governance, social responsibility and environmental sustainability. He added that the successful implementation of the project will result in significant energy savings and contribute to the UAE’s Net Zero 2050 strategic plan, further strengthening DMT’s commitment to sustainable development.

DMT played a key 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 the pre-qualified bidders, EDF and ENGIE signed a cooperation agreement with DMT to deliver the project.

The project was procured in accordance with Abu Dhabi’s PPP Law and ADIO’s Partner Project Guidelines and Environmental, Social and Governance (ESG) Policy. EDF and ENGIE signed a cooperation agreement with DMT following a comprehensive three-stage evaluation of proposals submitted by pre-qualified bidders.

The selected consortium will deliver the project in five phases, covering a relatively small geographical area of ​​Abu Dhaka to ensure the highest standards of efficiency and sustainability.

Ian Harfield, Managing Director of ENGIE Energy Solutions GCC, said: “This project perfectly demonstrates how public-private partnerships can deliver economic gains, sustainable development and significant decarbonization benefits for regional cities. Furthermore, the project helps advance the UAE’s The Green Agenda – 2030, focuses on clean energy and climate action, among other goals.”

Luc Koechlin, CEO of EDF Middle East, commented: “Our efforts now will focus on building the human capital we need using our international knowledge and the local expertise of our partners. We remain committed to contributing to the UAE’s carbon neutrality goals Contribute by implementing concrete actions at the forefront of COP28.”

ADIO is the central government agency responsible for promoting, developing and procuring infrastructure projects through Abu Dhabi’s PPP framework. In early 2023, ADIO, in partnership with Khalifa University, launched a major new PPP tender to provide accommodation and related facilities for 3,250 students in the UAE capital.

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