By Sam Bridge
New plant will be located at the Taweelah power and water desalination complex in Abu Dhabi, with completion expected in 2022
Emirates Water and Electricity Company (EWEC), a subsidiary of Abu Dhabi Power Corporation (ADPower) and Saudi-based ACWA Power have confirmed the successful financial closing of the world’s largest reverse osmosis desalination plant.
The new plant will be located at the Taweelah power and water desalination complex in Abu Dhabi, with completion expected in 2022.
A partnership of Abu Dhabi Power Corporation and Mubadala Investment Company holds a 60 percent equity interest in the Taweelah project with the remaining 40 percent held by ACWA Power, a statement said.
The project is to cost AED3.19 billion ($870 million), with funding sourced from a combination of senior project finance loans worth a total of AED 2.71 billion, in addition to equity contributions from shareholders and operating cashflow from pre-operations, it added.
Loans have been arranged by a group of local and international banks including Emirates NBD, Natixis, Mizuho Bank, Siemens Bank, Bank Boubyan and The Norinchukin Bank.
Othman Al Ali, CEO of EWEC, said: “We are delighted to announce that our financial targets have been met and that this new initiative can now get underway. This financial structure is testament to the world-class quality of the plant, which will pave the way for future developments that will contribute to a more efficient and sustainable water and energy sector in the country.”
Mohammad Abunayyan, chairman of ACWA Power, added: "The financial closing of the Al Taweelah plant with renowned institutions was made possible by our cooperation, the scale and impact of this project and the future growth and development we anticipate in the UAE.”
The Taweelah plant will supply 909,200 cubic metres per day and will be 44 percent larger than the world’s current largest reverse osmosis plant. It is sufficient to meet the water demand for over 350,000 households.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.