EWEC, ACWA Power announce financial closing of RO project

Business Bureau, Gulf Today

Emirates Water and Electricity Company (EWEC), a subsidiary of Abu Dhabi Power Corporation (ADPower) and a leading company in the integrated coordination of planning, purchasing and supply of water and electricity across the UAE, and ACWA Power, the leading Saudi-based developer, investor and operator of power generation and desalinated water plants, have confirmed the successful financial closing of the world’s largest reverse osmosis (RO) desalination plant.

The new plant will be located at the Taweelah power and water desalination complex in Abu Dhabi, with completion expected in 2022.

A partnership of Abu Dhabi Power Corporation and Mubadala Investment Company holds a 60 per cent equity interest in the Taweelah project with the remaining 40 per cent held by ACWA Power.

The project is to cost Dhs3.19 billion, with funding sourced from a combination of senior project finance loans worth a total of Dhs2.71 billion, in addition to equity contributions from shareholders and operating cashflow from pre-operations.

The Taweelah plant’s loan structure is a “Soft Mini Perm”, with an expected refinancing period of a maximum three years starting after the commencement of the Taweelah project’s commercial operations. Loans (including conventional and Islamic tranches) have been arranged by a group of local and international banks including: Emirates NBD, Natixis, Mizuho Bank, Siemens Bank, Bank Boubyan and The Norinchukin Bank. Natixis is the Agent Bank.

Othman Al Ali, CEO of Emirates Water and Electricity Company, said: “We are delighted to announce that our financial targets have been met and that this new initiative can now get underway.

This financial structure is testament to the world-class quality of the plant, which will pave the way for future developments that will contribute to a more efficient and sustainable water and energy sector in the country. This reverse osmosis desalination plant supports the UAE’s vision in reducing carbon dioxide emissions, while significantly reducing gas consumption by decoupling power and water production for the winter and summer seasons.”

Mohammad Abunayyan, Chairman of ACWA Power, added: “Achieving such a strategic milestone at this stage in our relationship with Emirates Water and Electricity Company is a sure indicator of the type of success we can expect from this project.

The financial closing of the Al Taweelah plant with renowned institutions was made possible by our cooperation, the scale and impact of this project and the future growth and development we anticipate in the UAE.”

“We are truly delighted to play a role in the Independent Water Producers programme (IWP) launched by Emirates Water and Electricity Company helping secure the water needs for its communities.”

The Taweelah plant will set new benchmarks for its size, efficiency and cost of water produced. Supplying 909,200 m3/day, it will be 44 per cent larger than the world’s current largest reverse osmosis plant of 624,000 m3/day.

The desalination facility is sufficient to meet the water demand for over 350,000 households. A major driver for the adoption of reverse osmosis instead of thermal desalination is the higher energy efficiency it offers. EWEC ensures the supply of power and water to consumers in the Emirate of Abu Dhabi and beyond.

The company is responsible for purchasing, selling, planning, organising and managing supply and demand of power and water.

Emirates Water and Electricity Company is committed to identifying opportunities and the development of power and water generation facilities, with a focus on sustainability and renewable technologies.

ACWA Power is a developer, investor and operator of a portfolio of power generation and desalinated water production plants currently with presence in 12 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions.

ACWA Power pursues a mission to reliably deliver electricity and desalinated water at a low cost, thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.