Funding secured for ADNOC’s AED3.8 bn water supply project

Construction will be undertaken by Orascom Construction and Metito
Funding secured for ADNOC’s AED3.8 bn water supply project
ADNOC (Photo from WAM)

ADNOC and Abu Dhabi National Energy Company (TAQA) have successfully concluded the financial closing of their $2.2 billion (AED8.3 billion) strategic initiative aimed at ensuring a sustainable water supply for ADNOC’s onshore operations.

This collaborative investment between two prominent energy entities in Abu Dhabi involves the establishment and operation of facilities dedicated to the environmentally responsible treatment and provision of seawater for ADNOC’s activities at the Bab and Bu Hasa fields in Abu Dhabi. Moreover, this significant endeavor aligns with ADNOC’s commitment to decarbonization, transformation, and safeguarding the future resilience of its operations.

Read more: ADNOC intends to capture1.5 mn tons per year of carbon dioxide

The construction of a state-of-the-art centralized seawater treatment facility, along with a transportation and distribution network, will be undertaken by a consortium consisting of Orascom Construction and Metito.

In this project, ADNOC and TAQA jointly hold a majority stake of 51 percent, with each holding 25.5 percent, while the Consortium holds the remaining 49 percent stake in the project company. In addition, the project will be developed under a build, own, operate, and transfer (BOOT) model, with ADNOC assuming full ownership after 30 years of operation.

Nine banks

The financing for the project will be facilitated by a consortium of nine banks. These include both local and international institutions. The banks involved are First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis. The list also includes Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD). Morever, Emirates NBD (ENBD), Emirates Development Bank (EDB), and Warba Bank are among the banks.

These banks will provide a combination of commercial and Islamic finance facilities to support the project.

Additionally, the remaining portion of the project cost will be covered by the project sponsors. This coverage will be in accordance with their respective equity shares.

Accelerating decarbonization

ADNOC seeks to connect all sources of emissions and sequestration sites to accelerate the company’s and UAE’s decarbonization goals.

Also, ADNOC has increased its carbon capture capacity to 2.3 million tons per annum (mtpa). This is equivalent to having 500,000 fewer gasoline-powered cars on the roads annually.

Furthermore, ADNOC has recently announced its net zero targets by 2045. These targets are a significant part of the company’s initial $15 billion decarbonization investment in low-carbon solutions.

For more news on energy, click here.