Successful financial close for ISTP2 treatment plants in Abu Dhabi

Al Wathba Veolia BESIX Wastewater, a public private partnership under a 25 years Build Operate Own & Transfer scheme between the Abu Dhabi Sewerage Services Company (ADSSC) and a Special Purpose Company owned by the Abu Dhabi Water and Electricity Authority, BESIX and Veolia, successfully closed the refinancing for the ISTP2 project on 27 October 2016.

A lenders’ syndicate comprising both local and international banks signed up to a long-term fully amortizing project financing in the amount of USD 340 million and with a maturity per end of 2032. BNP Paribas advised on the deal which lowers the cost of financing by approximately USD 28 million over the period and enhances the internal rate of return for shareholders after the initial financial close in 2009 was achieved in challenging post-GFC market conditions.

The project encompasses two sewage treatment plants in Abu Dhabi and Al Ain, with a treatment capacity of 300.000 m3/day (Al Wathba 2 Plant) for Abu Dhabi and 130.000 m3/day (Allahamah Plant) for Al Ain. The contractual framework provides nearly 1.5 million residents of the Emirate with high quality sewage treatment and reusable water services for a period of 25 years.