Oil Giant ADNOC And Abu Dhabi's TAQA Receives Financing For USD 2.2 Billion Water Project


Abu Dhabi National Oil Co. and Abu Dhabi National Energy Co., better known as TAQA, announced a $2.2 billion initiative to provide sustainable water supply to ADNOC's onshore activities. The project, announced in May, will include a centralized saltwater treatment plant for ADNOC activities at the Bab and Bu Hasa fields in Abu Dhabi, as part of the oil company's attempts to decarbonize its operations. 

As per ADNOC and TAQA, the project will be funded by a group of nine local and international banks using a combination of commercial and Islamic finance capabilities. First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank, and Warba Bank will fund the project. 

A consortium comprising Orascom Construction and Metito will construct a seawater treatment facility and transportation and distribution network. ADNOC and TAQA each own a 25.5 percent stake in the project, resulting in a combined 51 percent majority, while the consortium will own the remainder under a build, own, operate and transfer model,as per reuters.

Alpha Dhabi announced on that it intends to purchase a majority position in Metito Holdings, a UAE-based developer of water and wastewater projects. Alpha Dhabi proposes to buy out Metito's selling shareholders, Mitsubishi Corp., Mitsubishi Heavy Industries, and Gulf Capital, subject to regulatory approvals. 

Alpha Dhabi did not specify the magnitude of its investment in Metito, which has approximately 20 offices and 4,500 people worldwide. Alpha Dhabi also did not disclose the transaction's value or how it would be funded.

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