Ajman wastewater steams ahead

17 January 2003
Financial close was achieved in mid January on the $77.5-million loan for the estimated $140-million Ajman integrated wastewater project. It coincided with a restructuring of the shareholding in the project company, Ajman Sewerage (Private). Completion of the financing package clears the way for the engineering, procurement and construction (EPC) contract to come into effect. Ajman Sewerage will finance, build, operate and manage the new wastewater collection network, which will comprise 22 pump stations, a 49,000-cubic-metre treatment plant, 225 kilometres of gravity lines and 30 kilometres of pumping mains (MEED 27:9:02).

The lead arranging group for the club deal comprises Hypovereinsbank, Bayerischelandesbank, United Arab Bankand Mashreqbank. Total project costs are estimated at $140 million, of which about $38 million will be covered by equity, $77.8 million by the 14-year loan, and the balance by advanced payments of connection fees. Mizuho Financial Groupis acting as financial adviser to the client; the legal adviser to the sponsors is Denton Wilde Sapte.

The new shareholdings of Ajman Sewerage are Thames Waterof the UK with a 60 per cent stake, the US' Black & Veatch International with 10 per cent, Six Construct, part ofBelgium's Besix, with 10 per cent and the government of Ajman with 20 per cent.

Black & Veatch is the EPC contractor. Six Construct will carry out the civil works subcontract, while Thames Water Middle Eastwill be operations and maintenance contractor for the duration of the 27.5-year build-operate-transfer contract. The new network will serve some 350,000 residents in Ajman

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