A consortium consisting of ACWA Power and MDC Power Holding Company LLC, an entity fully owned by Mubadala Investment Company PJSC (Mubadala) along with the Federal Electricity & Water Authority (FEWA) has achieved the financial closure for the 150 MIGD Umm Al Quwain Independent Water Project (IWP) in the United Arab Emirates.
The $800 million project is funded on a debt to equity ratio of up to 85/15. A syndicate of seven international and local lenders will provide the $680 million senior debt. The mandated lead entities including Korea Development Bank, MUFG Bank, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, First Abu Dhabi Bank and Samba Financial Group helped structure the first IWP non-recourse project finance debt for FEWA on a 24.5-year door-to-door tenor.
Paddy Padmanathan, President & CEO of ACWA Power said: "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. This project is another example of our commitment to supply affordable potable water to more people by developing efficient water infrastructure that will cater for the growing demand in the country."
The UAQ IWP is an Independent Water Project (IWP) based on Reverse Osmosis Technology. The plant along with the associated Intake & Outfall facilities shall be developed to produce 150 MIGD (682,000 m³/day) of desalinated water and will be located at a coastal site in the Emirate of Umm Al Quwain along the border of Emirate of Ras Al Khaimah. The Water Purchase Agreement (WPA) with off-taker, Federal Electricity and Water Authority (FEWA), is signed for a 35-year term, and the plant is expected to be commercially operational by July 2022.