Financing for the $1.2bn commercial bank tranche of the Mirfa independent water and power project (IWPP) in Abu Dhabi is understood to be oversubscribed, with commitments of around $1.8bn expected.

The banking group is expected to include the UK’s HSBC, which is also advising project sponsor Abu Dhabi Water & Electricity Authority (Adwea), and several Japanese and three UAE-based banks. The deal has a seven-year tenor, but is expected to be refinanced once construction of the 1,600MW plant is completed.

France’s GDF Suez has been selected by Adwea to develop the project, but the contract has not yet been approved by the Abu Dhabi Executive Council.