Muharraq Wastewater Project in Bahrain achieved financial close
Date
August 07, 2011
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The concession for the Muharraq Wastewater Project was awarded in February of this year by the Ministry of Works, after the submission of bids in February 2010. Then the project came to a stop given the political events and financial close could not be reached as planned in April. The deal is the first significant capital markets deal in the kingdom since the recent political unrest.
The government agreed recently to extend the concession period on the project by two years to 29 years in order to allow the deal to move forward.
Samsung, Invest AD and United Utilities are committing 45 percent, 35 percent and 20 percent of the equity respectively. The US$ 285 million debt package comprises a direct loan from the Export-Import Bank of Korea (K-EXIM), a K-EXIM covered facility and an uncovered commercial facility. CA-CIB, Natixis and SMBC are the commercial banks participating in the covered and uncovered facilities. The debt package includes an $83 million tranche that has the benefit of comprehensive KEXIM guarantee cover
The project facilities are being constructed by Samsung Engineering as EPC contractor and will comprise a treatment plant capable of processing 100,000 cubic metres of influent per day and a deep gravity sewer trunk main and associated waste water collection network. The plant is scheduled to achieve completion in Q4 2013.
A joint venture between Samsung Engineering and United Utilities will operate and maintain the facilities.
Financial advisors
Macquarie is advising the sponsor. HSBC is advising the government.
Legal advisors
Shearman and Sterling has advised the lenders.
Ashurst LLP has advised sponsors Samsung Engineering, Invest AD and United Utilities in connection with the development and financing
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