Financial close reached for Umm al-Quwain IWP

A consortium of Saudi Arabia’s Acwa Power and Abu Dhabi-based Mubadala has reached financial close for a 150 million imperial gallon a day (MIGD) independent water project (IWP) in the Northern UAE emirate of Umm al-Quwain.

The $800m project is funded on a debt to equity ratio of 85 per cent to 15 per cent. The $680m senior debt will be provided by seven lenders, including Korea Development Bank, MUFG Bank, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation (SMBC), First Abu Dhabi Bank and Samba Financial Group.

The appointed developer consortium has signed a 35-year water purchase agreement (WPA) with the Federal Electricity & Water Authority (Fewa), the offtaker for the project. The plant is due to be operational by July 2022.

Acwa Power had initially been selected as preferred bidder for an Umm al-Quwain IWP, with a capacity of 45 MIGD, in June 2018. Acwa Power and Mubadala will each hold a 40 per cent stake in the SPV, while Fewa will hold the remaining 20 per cent.

Austria’s ILF Consulting Engineers was awarded the consultancy services deal for the IWP in January 2017.