Abu Dhabi-based National Central Cooling Company (Tabreed) plans to invest at least $5 billion in the coming five to seven years building cooling plants in the UAE and the Gulf, its chief executive said yesterday.
"Tabreed's expansion plans include building new cooling plants in the UAE and Gulf countries by investing a minimum of $5bn in the coming five to seven years," Dany Safi said.
Safi said the company is in talks with financial institutions to fund its projects, mainly through syndicated loans and Islamic bonds.
"Financing our expansion will be through bank funding and Islamic bonds (sukuks), but we are open to all options. We are in talks with some financial institutions," he said.
Tabreed has 25 cooling plants in the UAE with nearly 375,000 refrigerated tonnes (RT) of capacity.
"The demand for cooling plants is massive in this region due to the booming real estate developments," Safi said.
"We are building our first cooling plant in Saudi Arabia in the second half of this year.
"The plant will have a capacity of 40,000 RT and the investment outlay is 200 million riyals ($53.33m)."
The plant will be ready in early 2009, he said, adding that Tabreed plans to build more cooling plants in Saudi Arabia. At least 15 cooling plants are under construction in the UAE that would come on stream by 2010, Safi said.
Tabreed is also in advanced discussions to build cooling plants in Kuwait and Oman, he said.
Tabreed operates three plants in Qatar and two in Bahrain with local partners.
Source : Gulf Daily News