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District cooling is increasing in importance throughout the GCC, and Palm Utilities has a growth strategy to take advantage of any opportunities.
PDC currently provides district cooling services to a significant number of prestigious mega developments in the UAE, including the Gardens Residential Complex (25,000 TR), Jumeirah Islands (15,000 TR), Discovery Gardens (126,000 TR) and Palm Jumeirah Trunk (126,000 TR). Several developers all over the region are likewise increasingly deploying PDC's cost-efficient and environmentally friendly district cooling solutions.
Challenges Shafiq Khoori, Managing Director, PDC said: "Palm District Cooling is focusing its efforts on creating a sustainable development plan that will help us overcome the ongoing economic challenges and maintain our long-term growth prospects. We are also trying to leverage the growing interest towards our products and services as an increasing number of developers are beginning to appreciate the long-term benefits of district cooling solutions following PDC's successful deployment of district cooling facilities within a number of landmark developments in the UAE.
Energy efficiency “Our new growth strategy ultimately aims to help our clients improve utility costs and maximise energy efficiency, which is one of the most important concerns among developers right now."
Other high-stakes projects that utilise PDC's district cooling solution are The Jumeirah Lake Towers (167,000 TR), Palm Jumeirah Crescent (124,000 TR), Jumeirah Village South (255,000 TR), International City (125,000 TR) and Dubai Maritime City (100,000 TR) Environmental impact Wherever water resources are scarce and expensive, PDC utilises Treated Sewage Effluent (TSE) supplied by Palm Water (PW) – a strategic collaboration that results in reduced energy consumption, ultimately benefiting end-users and the entire community through lower utility costs and minimal environmental impact.
Palm Utilities, through PDC and PW, has been established to address the region's unique requirements in the distinctly critical areas of district cooling, and waste water treatment. Meanwhile, PU has announced that it recently raised an US$138mn bridge financing facility.
This is in line with its growth strategy within the UAE. Yousuf Kazim, Chief Executive Officer, Palm Utilities, said, “This financing commitment comes at a time when the region is experiencing severe liquidity constraints. It clearly validates the strength of our business model and the Technical Review Middle East - Issue Three 2009 Manufacturing 44 Shafiq Khoori Raising finance in the current environment was challenging
key role that PDC plays in helping to develop infrastructure in the UAE.” The financing will be utilised for capital expenditure requirements of the company and is part of a wider financing strategy that will include accessing the syndicated loan and capital markets in the future. “Raising finance in the present environment was challenging, but with the support of all the parties involved, we were able to get it done,” said Murtaza Chevel, Chief Financial Officer, Palm Utilities. PDC specialises in Build-Own-Operate model of development offering design, construction, operation & maintenance services in the district cooling space and has pioneered the concept of using treated sewage effluent for its district cooling operations.
The company’s current capacity 450,000 TR is expected to increase to 1 million TR over the next few years. Some of the key clients it currently services include developments such as the Palm Jumeirah Island, Discovery Gardens, Jumeirah Lake Towers and Ibn Battuta Mall. ■