Abu Dhabi Water and Electricity Authority (Adwea) will complete financing for the $3.2bn Shuweihat 2 independent power and water project (IWPP) on 15 October, according to sources close to the project.

If the financing is completed, it will conclude long-running attempts to secure funding. A $900m bridge loan was used to finance the project in early 2008 and Adwea has been trying to secure long-term funding since then.

The $1.1bn commercial bank tranche of the project will include twelve banks and was eventually oversubscribed. Pricing on the commercial bank tranche has remained at 260 basis points above the London interbank offered rate (Libor), despite efforts by some lenders to get their returns on the project increased. The project debt will have a tenor of 22 years, making it one of the few projects to secure long-term financing in 2009.

“There is nothing to hold up the process now, so completion of the financing will occur on 15 October,” according to a source close to the project.

In early September, Adwea asked banks to extend the maturity of a $900m bridging loan, which expired at the end of the month, as long-term financing had not been agreed yet (MEED 27:9:09).