Consortium wins $1.1b loan for UAE power and water plant upgrade
A $1.1 loan has been awarded by a syndicate of regional and international banks to a consortium comprising TotalFinaElf and Tractebel, for the upgrade and expansion of Abu Dhabi’s Taweelah A1 power and desalinization plant, which when complete will provide about quarter of the electricity and water needs of Abu Dhabi.
The Gulf Power Co, which is subsidiary of the Abu Dhabi Water and Electricity Authority (ADWEA), owns 60 percent of the A1 Project Co, in which TotalFinaElf and Tractebel each hold a 20 percent share.
The A1 Project Co. is responsible for managing the project, and ADWEA is committed to buying the plant's water and electricity output for a period of 20 years.
When complete, the A1 plant will have a 1,350 megawatts of capacity and produce 84 million gallons a day . The project is scheduled to be complete midway through 2003.
According to Gulf News, the lead loan arrangers are BNP Paribas and Citibank. Senior, and the co-arrangers include Arab Bank, Natexis Banques Populaires and Saudi Investment Bank. A further 24 other banks were participating in the syndication.
Taweelah A1 is the second independent water and electricity project in Abu Dhabi, and also represents the emirate’s first sale of an infrastructure asset sale an international concern.
This latest development is latest stage in a long-term privatization drive, started in 1996 when the government of Abu Dhabi set up a committee in 1996 to oversee privatization of its water and electricity sectors. – (Albawaba-MEBG)
© 2000 Mena Report (www.menareport.com)