Abu Dhabi Sewerage Services Company (ADSSC) has signed agreements with eight banks to provide a $400m loan for the development of two wastewater treatment plants in the UAE capital.

The banks are France’s BNP Paribas, Calyon and Natixis, National Bank of Abu Dhabi (NBAD), Japan’s Mizuho, Bank of Tokyo Mitsubishi and Sumitomo Mitsui Banking Corporation, and the Netherlands’ ING Group.

The financing for the project, known as the Second Independent Sewerage Treatment Plant (ISTP2), is split between a $384m nine-year loan with an option to extend the loan to a term of 20 years and a $20m standby facility.

Abu Dhabi Commercial Bank, First Gulf Bank and NBAD have also provided a dirham-denominated two-year bridge loan.

France’s Veolia and Belgium’s Besix will develop the project, which includes the construction of wastewater plants in Abu Dhabi and Al-Ain.

“There a still a few small areas that are being finalised but we expect to complete the financing arrangements by the end of September,” says an ADSSC adviser.