ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have successfully completed the financial closing of their $2.2 billion (AED 8.3 billion) strategic project to provide sustainable water supply for ADNOC’s onshore operations, according to the company's release.
A consortium comprised of Orascom Construction and Metito (the Consortium) will construct a centralized world-class seawater treatment facility and transportation and distribution network. ADNOC and TAQA own a joint 51% majority stake (25.5% each) with the Consortium owning the remaining 49% stake in the project company, that will develop the project under a build, own, operate and transfer (BOOT) model, with the full project being transferred to ADNOC after 30 years of operation.
The project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), Emirates NBD (ENBD), Emirates Development Bank (EDB) and Warba Bank through a combination of commercial and Islamic finance facilities. The balance of the project cost will be provided by the project sponsors in accordance with their equity shares.
In line with the objectives of ADNOC’s highly successful In-Country Value (ICV) program, more than 60% of the value of the project is expected to flow back into the UAE’s economy.