Bidders for the next independent water and power project (IWPP) in Abu Dhabi are expected to rely on 23-year debt financing, despite Abu Dhabi Water & Electricity Authority (Adwea) allowing short-term financing for the first time.

Bids for the Mirfa IWPP are due in February 2013 and companies are allowed to bid based on either 23-year financing, seven-year financing under a mini-perm structure, or a combination of the two.

MEED understands from sources involved in the deal, however, that most bidding consortiums are currently favouring using long-term debt over shorter-term funding, despite several banks and developers lobbying Adwea to permit the use of mini-perm structures.