Adwea raises Dh8 billion in funding

Abu Dhabi: Abu Dhabi Water and Electricity Authority (Adwea) said on Monday it had raised Dh8 billion ($2.18 billion) to fund its Shuweihat S2 water and electricity generation project.

"The financial closure of this vital project, which came about under the circumstances of the global financial crisis, underlines the strength of the Abu Dhabi economy and reassures global economies' trust in the emirate," said Adwea Chairman Shaikh Diab Bin Zayed Al Nahyan.

"Whilst major economies were going through a troubled financial climate, Adwea succeeded in achieving the largest long-term financing contract in the region extending to 22 years with several Asian, European, regional and local financial institutions," he added, without naming any of the banks or financial institutions involved in the deal.

Adwea said the financing value of the Shuweihat S2 project, its eighth project hin the framework of the privatisation programme, amounts to Dh8 billion to build a production plant with a capacity of 1,507 megawatts (MW) of electricity and 100 million gallons of water per day with an investment of almost Dh10 billion.

Shuweihat S2 was launched in 2008 and awarded to the French company Suez and to Marubeni of Japan. Later, Ruwais Power Company was established with Adwea owning 60 per cent of its shares while the foreign companies held 40 per cent.

Adwea works towards achieving the strategic objectives of the Abu Dhabi government in attracting foreign capital and transfer of contemporary technology and international expertise to its projects.

It produces, transmits and distributes potable water, electricity and sewerage services throughout the emirate of Abu Dhabi to a population of more than 1.5 million.

Oil retreats

Oil hit a year-high above $79 a barrel yesterday, driven by bullish sentiment across financial markets, but later slipped back as traders questioned whether ample fuel supplies justified current price levels.

US crude for November delivery touched a session high of $79.05 in early trade, the strongest since October last year, before paring gains to $78.33 by 1252 GMT, down 20 cents from the previous close.

Commodities priced in dollars become cheaper to non-dollar investors as the US currency weakens, which has the effect of driving up the nominal oil price as investors move in. — Reuters