Bloomberg/Martin Barzilai

Islamic Banking

EWEC, ACWA secures AED 3.19 billion for Abu Dhabi desalination plant

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The plant is due to start full commercial operations in the fourth quarter of 2022 and Emirates Water Electricity Company (EWEC) will be the buyer of the water produced for a 30-year period.

Sunday 20, October 2019 BY KUDAKWASHE MUZORIWA

Emirates Water and Electricity Company (EWEC) and Saudi Arabia's ACWA Power have secured AED 3.19 billion ($869 million) financing facility for Abu Dhabi's Taweelah water desalination plant from a syndicate of banks, according to WAM.

In a statement, EWEC and ACWA said that the Taweelah plant’s loan structure is a ‘Soft Mini Perm’, with an expected refinancing period of a maximum three years starting after the commencement of the Taweelah project’s commercial operations.

Mohammad Abunayyan, the Chairman of ACWA Power, said, “The financial closing of the Al Taweelah plant with renowned institutions was made possible by our cooperation, the scale and impact of this project as well as the future growth and development we anticipate in the UAE.”

The loans both conventional and Islamic tranches have been arranged by Emirates NBD, Natixis, Mizuho Bank as well as Siemens Bank, Bank Boubyan and The Norinchukin Bank.

ADPower and Abu Dhabi’s Mubadala Investment Company holds a 60 per cent equity interest in the Taweelah project while ACWA Power holds the remaining 40 per cent.

The plant will supply 909,200 cubic metres per day (m3/day) of water, 44 per cent more than the world’s current largest reverse osmosis plant of 624,000 (m3/day), meeting the water demand of 350,000 households.

 

TAGS : The Norinchukin Bank, Bank Boubyan, Mizuho Financial Group, Siemens Bank, Natixis, Emirates NBD, Emirates Water and Electricity Company, Mubadala Investment Company, Taweelah project, ACWA Power

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