By Sam Bridge
A consortium has announced the financial closure for the largest desalination project in Umm Al Quwain
A consortium has achieved the financial closure for the largest desalination project in Umm Al Quwain.
The group consisting of ACWA Power and MDC Power Holding Company, along with the Federal Electricity & Water Authority (FEWA) has funds in place for the 150 million imperial gallons per day (MIGD) Umm Al Quwain independent water project.
The $800 million project is mainly funded by a syndicate of seven international and local lenders who will provide $680 million senior debt.
The mandated lead entities include Korea Development Bank, MUFG Bank, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, First Abu Dhabi Bank and the Saudi American Bank.
Paddy Padmanathan, president and CEO of ACWA Power, said: “We are pleased to partner with FEWA and Mubadala on the first IWP infrastructure in Umm Al Quwain. Successfully achieving financial closure at this stage is testament to the readiness of the market for private-public partnerships.
"It also reflects ACWA Power’s strong financial standing and reliability as well as the credence we have gained from global and financial institutions that has been developed over years of successful operations and partnerships.”
The plant will be developed to produce 150MIGD of desalinated water and will be located at a coastal site in Umm Al Quwain along the border of Ras Al Khaimah.
The water purchase agreement with FEWA is signed for a 35-year term, and the plant is expected to be commercially operational by July 2022.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.