DUBAI, Aug 16 (Reuters) - UAE's Dubai Electricity and Water Authority (DEWA) has selected Saudi Arabia's ACWA Power as preferred bidder for construction and operation of phase 1 of its Hassyan sea water desalination project, the Dubai media office said on Wednesday.

The 3.36 billion dirham ($914.91 million) Independent Water Producer (IWP) project has projected capacity of 180 million imperial gallons per day. ($1 = 3.6725 UAE dirham) (Reporting by Ahmed Elimam Editing by David Goodman)