Abu Dhabi Sewerage Services Company (ADSSC) is close to securing $400m long term financing for the development of two wastewater treatment plants in the UAE capital.

The financing will be priced between 300 and 325 basis point above the London interbank-offered rate (Libor). It will have a tenor of nine years with an option for ADSSC to extend the maturity.

Contractors have already started work on the project, known as the Second Independent Sewerage Treatment Plant (ISTP2), following the completion of a $85m bridge loan, that expires in September (MEED 13:09:09).

France’s Veolia and Belgium’s Besix will develop the project, which includes the construction of wastewater plants in Abu Dhabi and Al Ain. The two firms will hold 20 per cent of the project, with ADSSC holding the remaining 60 per cent.

France’s Calyon and Natixis, and National Bank of Abu Dhabi financed the bridge loan, and several other international banks will join them on the longer term financing.