$225m Jordanian wastewater plant reaches FC

Washington D.C.-based Millennium Challenge Corporation – in its first project financing – and a syndicate of Jordanian banks led by Arab Bank have helped Suez Environnement, Infilco Degremont and The Morganti Group close on Jordan’s ‘only project financing to take place this year’.

A consortium of Suez Environnement, Infilco Degremont and The Morganti Group have reached financial close on a $225 million wastewater treatment plant expansion project in Jordan, Chadbourne & Parke, which advised the sponsors, announced in a statement yesterday.

The plant – known as the As-Samra Wastewater Treatment Plant – reached financial close backed by a grant from Washington D.C.-based foreign aid agency Millennium Challenge Corporation – in what was the agency’s first-ever project financing – and a syndicate of Jordanian banks led by Arab Bank, Chadboure said. The Jordanian government will also contribute “progress payments” from the sponsors.

The As-Samra project will be procured as a 25-year build-operate-transfer (BOT) contract that will require the sponsors to expand capacity of a 2008 plant which is close to reaching its maximum capacity. The expanded plant is set to improve the environmental and health conditions of some 3 million people, once it’s completed over the next 36 months. It is being billed by law firm Chadbourne as “the only project financing to take place in Jordan this year”.

For Chadbourne, the wastewater deal is the latest in a string of Middle-Eastern projects the law firm has advised on.

“This latest deal helps to reinforce Chadbourne’s strong track record of successfully closing power and water deals in Jordan and the Middle East,” highlighted Dubai-based project finance partner Richard Keenan.

Chadbourne has advised on several Middle-Eastern power projects including the Quarayyah IPP in Saudi Arabia, the Shuweitah 2 IWPP in Abu Dhabi and the Barka 3/Sohar 2 IPPs in Oman.