Dubai based National Central Cooling Company, better known as Tabreed, has signed a Dh306.4 million ($83.43m) agreement with developer Egyptians for Healthcare Services (EHCS) to provide district energy services to CapitalMed, its new healthcare city project.
In a filing on Wednesday to the Dubai Financial Market, where its shares are traded, Tabreed said the move is part of the company’s plans to expand its presence in Egypt.
The long-term concession agreement requires Tabreed to fund, construct and operate a bespoke district energy plant to meet the cooling and heating demands for CapitalMed, with 19,500 refrigeration tonnes (RT) of cooling required for the first phase and a concession of between 28,000 RT and 30,000 RT for the entire development.
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“Commencing operations in Egypt [in February] was an important strategic move that is part of our long-term plans for sustainable growth beyond our traditional geographic borders,” said Tabreed chief executive, Khalid Al Marzooqi.
“We look forward to a very long and fruitful presence in Egypt as we bring our unrivalled expertise to such an exciting, dynamic and promising market. EHCS and Tabreed will work extremely well together, sharing common goals of maximum efficiency.”
The National reported that earlier this year, Tabreed collaborated with the Egyptian Company for Energy and Cooling projects and Marakez for Real Estate Investment Company to provide district cooling services to the new District Five Mall in east Cairo.
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The report said the company had hinted in June that it is entering new markets in North America and Kuwait as part of its regional expansion.
Tabreed owns and operates 86 district cooling plants across the GCC, including 75 in the UAE, three in Saudi Arabia, seven in Oman and one in Bahrain, in addition to other international projects and operations.
“The assets to be developed in Egypt are an important, strategic step for Tabreed and its regional expansion plans. We do not expect this transaction will materially impact Tabreed’s existing operations or the rights of its shareholders,” the company said in the bourse filing.
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