UAE-based National Central Cooling Company (Tabreed) has entered into a 30 year concession for a contracted cooling capacity of 20,000 refrigeration tons (RTs) with India to build, own, operate and transfer a district cooling system in Amaravati, the new capital of Andhra Pradesh.
The agreement is with Andhra Pradesh Capital Region Development Authority (APCRDA) and this will be Tabreed’s first plant outside its GCC market.
Tabreed’s district cooling system is part of the Indian state of Andhra Pradesh’s vision for Amaravati to create jobs and homes along with a world-class infrastructure, a green city, and efficient resource management.
Although Tabreed’s key markets are the UAE and Saudi, in a January 2019 interview with MEP Middle East, Jasim Husain Thabet, Tabreed’s CEO, said: “We are building new plants in Abu Dhabi for some government customers. The focus for 2019 is to continue to grow in our stronghold and explore future markets. We are exploring opportunities outside the GCC.”
Dr. Afif Saif Harhara Al Yafei, vice president – Regional Asset Management, Tabreed, had added in the interview that the district cooling company is "confident in moving onto new markets and are currently looking into the feasibility of entering Egypt and India.”
Tabreed’s system will meet cooling requirements for the Andhra Pradesh's assembly, high court, secretariat and other government buildings that are currently under construction, for which cooling services will commence from early 2021.
Khaled Abdulla Al Qubaisi, Tabreed’s chairman, commented: “As the UAE flagship District Cooling provider we are very pleased to be taking a leading role in the development of the new capital city of Andhra Pradesh. As our first district cooling project in India, this signals a significant step for Tabreed to penetrate one of the world’s biggest and fastest growing markets. We see this as an opportunity to establish an initial presence which will be the foundation for further growth in the future.”
Thabet added: “We are very pleased with our first project in India, increasing our presence to 6 countries. Our strong core business, experienced team, structuring capabilities, and proven innovative skills made us the ideal choice to be a long-term partner of APCRDA. Our focus will be on delivering high quality and cost-effective cooling solution to provide long-term benefits for the Andhra Pradesh government.”
Dr. Sreedhar Cherukuri, commissioner, Andhra Pradesh Capital Region Development Authority (APCRDA), said: “Bringing in the best solutions and providers from across the world to build Amaravati, we are excited to select Tabreed, a global district cooling leader, as our partner for our new capital. Tabreed demonstrated strong commercial flexibility, operational depth, and understanding of the complexity of well-structured district cooling concession schemes through the bidding process.”
Exploring other growth opportunities across India, Tabreed is actively working with the UN Environment’s District Energy in Cities Initiative, a multi-stakeholder partnership that assists developing countries and cities to accelerate their transition to lower carbon and climate resilient societies through modern district energy systems.