Advice coming for UWEC

28 May 2004
Abu Dhabi-owned Union Water & Electricity Company (UWEC)is expected to appoint a financial adviser in late May or early June for the proposed sale of a 49 per cent stake in the utilities generation company and the proposed expansion of its Qidfa complex. A shortlist of international banks made final presentations in mid-May for the position.

'The current plan is for a 49 per cent stake in the company to be sold to a strategic investor, which will also be locked into the proposed expansion project,' says a source close to the deal. It is expected that up to 1,000 MW of power capacity and 100 million gallons a day of water will be added under the phase 2 project. UWEC is yet to sign an offtake agreement with Abu Dhabi Water & Electricity Company (ADWEC).

It is understood that the current schedule sees requests for proposals issued by September, a deadline for commercial bids in early 2005, a preferred bidder selected by June 2005, full financial close by the end of the first quarter in 2006 and the full transfer of assets by June 2006. It is expected that the refinancing of the $950 million, five-year bridge loan signed in 2002 will be wrapped up in the debt package for the proposed expansion (MEED 10:5:02).

'The first part of the mandate - which is due to be completed by the end of July - involves a concept report that will either revalidate the plan or induce changes to it,' says the source.

UWEC is also preparing to appoint a legal adviser. Among the shortlisted firms are thought to be Shearman & Stirling, Allen & Overyand White & Case.

Germany's Fichtneris acting as the technical adviser (MEED 9:4:04).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.