A consortium consisting of ACWA Power and MDC Energy Holding, a wholly owned subsidiary of Mubadala Investment Company and Mubadala, and the Federal Electricity and Water Authority (FEWA) announced the successful financial closure of the largest reverse osmosis desalination plant in Umm Al Quwain. Umm Al Quwain Emirate with a production capacity of 150 million gallons.
The $ 800 million project will be funded on a debt-to-equity ratio of 85/15 and a group of seven international and local financiers will provide the $ 680 million loan.
Key delegates – Korea Development Bank, Bank of Japan MUFG, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, First Abu Dhabi Bank and Saudi American Bank – helped structure the first Loans to finance the project on the basis of “without recourse to the guarantor” of the Federal Electricity and Water Authority in the UAE for a comprehensive period of 24.5 years.
The project is the largest water desalination project in the northern areas of the country and contributes to the development of the infrastructure of the Emirate of Umm Al Quwain and rely on the development of an effective water infrastructure that will be able to meet the growing demand in the UAE and through the commitment of the company “ACWA Power” Drinking water is affordable for growing numbers of consumers.
The project will be built on the coast of Umm Al Quwain and a water purchase agreement has been signed with the Federal Electricity and Water Authority for 35 years. The plant is expected to be commercially operational in July 2022.