Mashreqbank has been mandated as one of the Lead Arrangers and the Local Currency Agent for the 515 million Emirati dirham ($140 million) Ajman Wastewater Project. The project achieved financial close in January.
Sponsored by Black & Veatch and Thames Water, the project is the Gulf’s first integrated wastewater scheme to be implemented on a build-operate-transfer (BOT) basis. The shareholding make-up of Ajman Sewerage (Private) Company (ASPC) Thames Water, with a 60 percent stake, Black & Veatch with a 10 percent stake, the Government of Ajman (GoA) with a 20 percent and Six Construct with a 10 percent stake.
The financing structure incorporates a mix of equity, debt and connection revenue, modeled on the lines of the UK’s Private Finance Initiative (PFI) to finance infrastructure projects entirely through private capital.
The project will be implemented in phases over a 48-month period, and includes a sewage treatment plant incorporating design features customized for the Gulf climate, 22 pumping stations and laying of over 250 kilometers of pipelines to connect more than 45,000 properties.
The plans also take into account expansion in the future to meet the demands of a growing population. Now that the project has started, Ajman Sewerage Company is contacting all property owners who, under the new Sewer Law must now register in order to be connected to the new system.
The other members of the lead arranging group are Hypo-und Vereinsbank, London Branch, which is also the Administrative Agent, Bayerische Landesbank, London Branch and United Arab Bank.
The Financial Adviser was Mizuho Corporate Bank, London, and the Legal Advisers were Allen & Overy, Dubai representing the lead arrangers and Denton Wilde Sapte, Dubai advising the sponsors. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
