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) have announced the successful financial closing of the Umm Al Quwain Independent Water Project (UAQ IWP), i United Arab Emirates.
The plant along with the associated Intake & Outfall facilities shall be developed to produce 150 million imperial gallons a day (682,000 m³/day) of desalinated water.
The location of the project is at a coastal site in the Emirate of Umm Al Quwain along the border of Emirate of Ras Al Khaimah.
Once commissioned, the Umm Al Quwain plant will be the largest desalination project in the Northern Emirates.
The project is to cost $800 million, 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.
The UAQ IWP is an Independent Water Project (IWP) will be constructed based on Reverse Osmosis Technology.
The Water Purchase Agreement (WPA) with off-taker, Federal Electricity and Water Authority (FEWA), is signed for a 35-year term.
The plant is expected to be commercially operational by July 2022.
Under the terms of the agreement FEWA will hold 20 percent of the stake, while ACWA Power and Mubadala will each own 40 percent. The government of Umm Al Quwain will join as a partner in the project and will own a stake at a later date.
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