The UK government has secured financing for the construction of a drainage network over 350km long which will bring clean water to tens of thousands of residents in the Al-Hillah district of Iraq, to the south of Baghdad.
The financing comprises a guarantee for £113 million in financing arranged by Standard Chartered Bank, as sole Structuring Bank, Mandated Lead Arranger and Agent, and a £113 million direct loan from His Majesty’s Treasury.
UK Export Finance – the government’s export credit agency – has ensured that the government of Iraq can access £226 million (US $286 million) in financing to fund the project, which will be transformational for a district currently unable to treat wastewater.
Upon completion, the network is expected to process up to 20 million cubic metres of water each year, bringing clean water to over 25,000 households and improved sanitation to hundreds of thousands.
The transaction is expected to support over £100 million in UK export contracts, which make up almost half of the total project value. Turning to the country which gave the world its first modern sewage system, the project will procure equipment and related installation services from the UK.
