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Sembcorp Starts $200 Million U.A.E. Water Plant Expansion

June 30 (Bloomberg) -- Sembcorp Industries Ltd. today started the $200 million expansion of a water-desalination plant in the United Arab Emirates that it operates together with the government-owned utilities of Abu Dhabi.

The expansion of the Fujairah 1 Independent Water and Power Plant will add 30 million imperial gallons per day of desalination capacity at the facility by the first half of 2015, the Singapore-based company said in a statement.

Emirates SembCorp Water & Power Co., as the venture is known, currently has 100 MIGD of desalination and 893 megawatts of power-generation capacity, according to its website. Abu Dhabi National Energy Co., known as Taqa, and Abu Dhabi Water and Electricity Authority own 60 percent of the venture. Sembcorp holds the rest.

Middle Eastern oil producers are expanding power and desalination capacity to meet the demand of growing populations. Abu Dhabi, the largest emirate in and capital of the U.A.E., is financing power and water expansions to serve smaller sheikhdoms such as Fujairah.

Acciona SA of Spain said in January it won the contract for the expansion work from the Fujairah 1 venture.

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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