A consortium led by Samsung Engineering has successfully completed the financing of the first public-private-partnership (PPP) project in Bahrain’s wastewater sector.

The Muharraq Wastewater Treatment Plant, also the first PPP completed in the Middle East this year, has Invest AD and United Utilities as partners, said a statement from Samsung Engineering.

The project 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.

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 on February 2.

“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, the statement said.

Through its teams in the UAE and South Korea, Macquarie Capital arranged a competitive 22 year financing solution with $280 million of committed debt comprising a direct loan from the Export-Import Bank of Korea (K-Exim), a K-EXIM covered facility and an uncovered commercial facility, it stated.

CA-CIB, Natixis and SMBC are the commercial banks participating in the covered and uncovered facilities.

Ashurst acted as legal adviser for the consortium and Shearman & Sterling for the lenders.

HSBC acted as financial adviser and Norton Rose as legal adviser for the Bahrain Ministry of Works and Ministry of Finance.-TradeArabia News Service