Dubai Electricity & Water Authority (DEWA) has approached banks directly about providing a three-tranche financing for its most imminent projects. Responses were submitted on 15 January.

DEWA is seeking: a one-year, AED 1,800 million-2,000 million ($490.5 million-545 million) overdraft facility, available from 1 February; a five-year, AED 3,700 million ($1,008.2 million) revolving credit facility, available from 1 April; and a AED 5,500 million ($1,499 million) commercial loan with three possible tenors – five, nine or 12 years – available from 1 August. The margin is not specified on any of the tranches.

The approach represents a change in strategy by DEWA. In late 2005, the authority tendered but never awarded a financial advisory mandate to look at meeting all its future financing requirements. It is the first time DEWA has sought commercial funding for its projects (MEED 28:10:05).

DEWA is undertaking a host of schemes to meet soaring power demand in the emirate, including phase three of the H station development and the grassroots Jebel Ali M power and desalination complex, which will have capacity of up to 2,000 MW and 60 million gallons a day (MEED 30:9:05).