The Samsung Engineering, Invest AD and United Utilities consortium has successfully completed its project financing of the Muharraq Wastewater Treatment Plant PPP in the Kingdom of Bahrain.
Following a competitive bidding process, the consortium was awarded the project and entered into a long-term concession agreement with the Bahrain Ministry of Works in February 2011. The project is the first PPP in Bahrain's wastewater sector, and the first PPP completed in the Middle East this year.
The plant
It involves the development of a greenfield 100,000 m3/day wastewater treatment plant (with potential expansion up to 160,000 m3/day) and a 15-km deep gravity sewer conveyance system under an availability based concession structure.
Market conditions
"The financial close of this project demonstrates the strength of the consortium ,and the project to be able to complete the financing in difficult market conditions," said Head of Samsung Engineering's Finance Department, Kang GyuYeon.
Macquarie Capital was the sole financial adviser to the consortium. HSBC acted as financial adviser and Norton Rose as legal adviser for the Bahrain Ministry of Works and Ministry of Finance.
