Norton Rose Fulbright advises on shariah-compliant financing for sewage treatment plant
Norton Rose Fulbright has advised the National Commercial Bank (NCB) as senior lender to a consortium comprising The Power and Water Utility Company for Jubail and Yanbu (Marafiq), AlAmwal AlKhaleejiah AlThaniya and Veolia Middle East on the shariah-compliant financing and project documentation for the Jeddah airport independent sewage treatment plant (ISTP) (the project). The firm acted as international legal counsel as well as Saudi local counsel to NCB.
The project will be developed by Jeddah Althaniya Water Company (a Saudi incorporated project company owned by the sponsors) which has signed a 25 year sewerage treatment with the Saudi Water Partnership Company. It is expected to be fully operational in January 2023.
The project will be built over two phases. The first phase of the project will treat 300,000 cubic metres of wastewater per day with an option to increase this to 500,000 cubic metres per day in the second phase.
Paul Mansouri, projects and banking partner, who led on the deal, commented, “We are delighted to have supported NCB and other lenders on this major project which forms part of the ongoing programme in the Kingdom of Saudi Arabia to invest in its water and wastewater infrastructure. Achieving financial close in the face of the challenges presented by COVID-19 has been a testament to the commitment and dedication of the lenders and the sponsors. The closing of Jeddah ISTP follows on from our team advising lenders this year on the successful closings of the Umm al Quwain IWP, Taweelah IWP in Abu Dubai and Fujairah 3 IPP and demonstrates that the GCC continues to be a key jurisdiction for infrastructure and power projects.”
The Dubai team was led by partners Paul Mansouri, Joanne Emerson Taqi and Robin Balmer. They were supported by counsel Angela Croker, and associates Hesa Alsaad, Natasha Elnajjar and Daniel Too. The Riyadh team was led by partner-in-charge Mohammed al-Ghamdi and partner Paul Lockyer.
