Lenders to the project hope to force Adwea to increase the pricing of the loans for a third time. No progress is expected on the deal until late August.

In early June, Adwea tried to get the banks to commit to a 22-year loan with a margin of 225 basis points over the London interbank offered rate (Libor), rising to 300 basis points after 10 years, and 350 basis points after 20 years.

In early July, Adwea offered an additional 35 basis points on the deal, but the banks still say the terms are not good enough (MEED 10:07:09).

The banks hope that if they receive internal credit approval for the loans by mid-August, they can convince Adwea to pay more for the loans.

Adwea would then be under pressure to reach a deal because it needs to refinance a $900m bridging loan for the scheme, which expires in September.

If Adwea cannot raise the money from commercial banks by September, Abu Dhabi may decide to nationalise the project.

Adwea had hoped to complete the financing by early July.

"Once the commitment letters are in, banks are hoping to get higher pricing out of Adwea," says one banker close to the deal.

However, some banks in the lending group may reluctantly agree to Adwea's current terms.