Proximo Weekly: More details on Dubai waste
A waste-to-energy PPP first for Dubai Municipality.
More details have emerged on the $927 million project financing of the 200MW Dubai Waste-to-Energy project – the first PPP project to be procured by Dubai Municipality.
Structured via SPV Dubai Waste Management Company, the financing has a 25-year tenor and comprises a $452 million tranche from JBIC; a $380 million tranche guaranteed by NEXI and provided by Mizuho, SMBC, Standard Chartered, Societe Generale, Credit Agricole, and KfW IPEX-Bank; and a $95 million uncovered tranche from several of the commercial banks in the lending group.
The project is sponsored by ITOCHU (20%), Hitachi Zosen (10%), BESIX (9.5%), Dubai Holding Commercial Operations Group (31%), Dubai Holding (20%), and Tech Group Dubai (9.5%). It is the first PPP project to be procured by Dubai Municipality and will be developed under a 35-year build-operate-transfer (BOT) concession, leaving a fourteen-year positive tail on the project debt. Allen & Overy is legal adviser to the lenders, while Covington is counsel to the sponsors and Squire Patton Boggs is acting for Dubai Municipality.
The concession follows a standard availability-based model, with fixed gate fees from Dubai Municipality for the processing of waste and a guaranteed offtake for electricity produced by the plant. As a result, the project carries no merchant risk. When completed, the plant will be able to process as much as 1.9 million tonnes of waste per year. Project completion is expected in 2024.
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EUROPE
Belgium wants new site for French offshore wind project
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ASIA-PACIFIC
AIIB joins Global Infrastructure Facility
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MIDDLE EAST & AFRICA
MAWANI invites EOIs for 8 Saudi port terminals
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SOUTH AMERICA
Qair signs MoU for $6.9bn hydrogen project in Brazil
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