Al Mirfa (Project Wave) Independent Water Treatment Project
CLIENT
Adnoc, TAQA
LOCATION
UAE
DATE
VALUE
SERVICES PROVIDED
Finanial Advisor
Al Mirfa, known as Project Wave, is a groundbreaking $2.2 billion initiative by ADNOC and TAQA to establish an independent water treatment and transportation system. This project replaces ADNOC’s aging aquifer injection infrastructure, improving energy efficiency by up to 30%.
ADNOC and TAQA hold a joint 51% stake in the project company, with the remaining 49% owned by a consortium of Orascom Construction and Metito Utilities.
This innovative project integrates advanced water treatment technology, extensive infrastructure upgrades, and efficient resource utilisation, solidifying ADNOC and TAQA’s commitment to sustainable energy operations.
Key objectives of the project include improvements in operational efficiency, reduction in water costs, and attracting foreign and local investment while maximising in-country value. ADNOC and TAQA hold a joint 51% stake in the project company, with the remaining 49% owned by a consortium of Orascom Construction and Metito Utilities. This innovative project integrates advanced water treatment technology, extensive infrastructure upgrades, and efficient resource utilisation, solidifying ADNOC and TAQA’s commitment to sustainable energy operations.
Tribe Advisory was selected as the sole financial advisor for phase one of Project Wave, bringing extensive experience in structuring and securing financing for large-scale infrastructure projects.
Tribe collaborated with a diverse consortium of local and international banks to secure financing. The financial structure included a combination of commercial and Islamic facilities, ensuring a comprehensive financing package that met the needs of all stakeholders involved.
TRIBE ADVISORY'S ROLE
Tribe’s responsibilities included:
Bid Plan and Project Document Review
Review of the RFP and provision of recommendations for optimisation within the bid framework.
Review of all Project Documents, suggesting improvements from a Sponsor perspective as well as ensuring their bankability and alignment with lender expectations.
Suggesting and managing the clarifications process from a commercial standpoint.
Financial Modelling and Scenario Analysis
Development of a robust, bespoke financial model meeting the requirements of lenders and Sponsors
Performing valuation and optimisation in order to submit the most competitive bid while respecting all the requirements of all the individual Sponsors
Preparation of investment committee presentations and all required analysis to articulate financing strategies and sensitivities to market and operational changes.
Debt Raising
Securing committed debt financing to support the bid, coordinating the process of pre-bid due diligence and credit approval
Negotiation of financing term sheets and commitment letters with a broad range of potential lenders
Delivering lenders’ initial credit approval with regard to a complex project and contracting structure with a risk allocation diverging from typical regional precedents
Financial Closing
Coordination of the due diligence, approval process and closing process of the lenders, including detailed and comprehensive technical and legal due diligence necessary to deliver lenders’ approval on the complex project and contracting structure
Negotiation of the financing documentation with a large lender group
Advising on the hedging strategy including bespoke elements to cover ADNOC’s interest rate risk over the entire concession tenor despite the short tenor of the initial Hard Mini Perm debt.
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