The $140 million financing for the pioneering wastewater project in Ajman has been finalised. The shareholding in Ajman Sewerage (Pvt) Co. Ltd. has also been restructured at financial close with the Ajman Government taking a 20 per cent stake.

The four lead arrangers are Germany's Bayerische Hypo-und Vereinsbank and Bayerische Landesbank, and the UAE's MashreqBank and United Arab Bank.

Mizuho Corporate Bank in London acted as financial advisor while Denton Wilde Sapte was legal advisor.

"This is a classic case of innovation creating value by stretching the envelope to deliver a pathfinder transaction that will be important not just for Ajman but for the region as a whole," said Doug Smith, president of Black and Veatch, Europe Division, the EPC contractor.

It also holds 10 per cent in Ajman Sewerage (Pvt) Co Ltd, set up last May. The others are Thames Water Aqua International (60 per cent), Ajman Government (20 per cent) and Six Construct (10 per cent).

Total project cost includes $38 million to be covered by equity, $77.5 million by a loan package arranged as a club deal, and the balance by payment of connection fees.

Total revenues over the 27.5 years concession terms are estimated at over $450 million. The project will see $140 million worth of new infrastructure in Ajman within the first four years. It will provide the UAE's first state-of-art sewerage system for 350,000 people, connecting more than 45,000 properties to modern sanitation facilities.

Each property owner in Ajman is required to contribute to the construction of the network through payment of a connection fee, which will depend on the size of the individual property.

Ajman Sewerage will finance, build, operate and manage the new collection network comprising over 22 pumping stations, 225 kilometres of gravity pipeline and 30 kilometres of pumping mains. The system also includes a new 49,000 cubic metre a day wastewater treatment plant.