Dubai's Jebel Ali Free Zone (Jafza) has announced plans to retrofit its existing buildings and facilities in a bid to become the world's the most energy efficient business hub.

The agreement between Economic Zones World (EZW) and DEWA's Etihad ESCO will make all buildings in Jafza more energy efficient, a statement said.

The project will significantly reduce Jafza's carbon footprint and will make its operations more sustainable and efficient, it added.

The first phase of the project comprises the energy retrofit of 157 staff accommodation buildings in Jafza and includes replacement of 5,000 old air conditioners, 85,000 old light fixtures and 31,000 old water fixtures.

Sultan Ahmed Bin Sulayem, chairman of DP World and Ports, Customs and Free Zone Corporation, said: "The utility cost is the second largest expense for Jafza. The power and water consumption level in Jafza crossed 75 million KWh and 750 million IG per year respectively.

"As a pioneering Free Zone and top business hub, we felt the urgent need to make our old commercial and residential buildings more energy efficient."

He said the project would achieve average consumption savings of 28 percent of power, 36 percent of water while reducing carbon footprint by 75,000 tons during the six year project which will generate a net saving of AED132 million ($35.9 million).

Saeed Al Tayer, chairman of Etihad ESCO, added: "This is a significant milestone in the history of Etihad ESCO as we sign the largest energy retrofit project of UAE and the Middle East. Our commitment is to enhance energy efficiency and this project is intended to reduce water consumption and electricity usage thereby saving a significant sum."