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Dubai, United Arab Emirates: Standard Chartered announced today the successful financing for Abu Dhabi’s Waste-to-Energy Project, marking Abu Dhabi’s first venture into large-scale waste-to-energy conversion. This significant project is being procured jointly by Tadweer Group and Emirates Water and Electricity Company (EWEC) and will be developed as a collaboration between Tadweer Group and an international consortium comprising of Marubeni, Hitachi Zosen Inova (HZI) and Japan Overseas Investment Corporation for Transport & Urban Development (JOIN).
The Waste-to-Energy Project will be constructed as a multiline facility with the capability to treat 2,700 tons of municipal solid waste per day, equivalent to 900,000 tons per annum. This project aligns with the UAE’s broader environmental objectives by reducing landfill usage and promoting renewable energy. The project is integral towards helping divert 80% of waste in Abu Dhabi from landfills by 2030 and to showcase the value of waste as an energy source to reduce environmental pollution. Net emissions of up to 1 million tons of CO2 per year are envisaged to be saved by the project.
Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE, Middle East and Pakistan, commented: “We are delighted to spearhead the financing for Abu Dhabi’s first waste-to-energy project. This initiative is a crucial step forward that demonstrates our commitment to supporting the UAE’s sustainability goals. By converting waste into energy, we are not only addressing waste management issues but also contributing to the generation of low carbon energy solutions. This project exemplifies the innovative and forward-thinking approach the UAE leadership has put in place to tackle the environmental challenges we face today, and we are proud to be part of the country's journey towards achieving the 2050 Net Zero objective."
Standard Chartered played a pivotal role in this project from its inception. The bank supported a Japanese consortium comprising Marubeni, HZI and JOIN. From the pre-bid stage, Standard Chartered acted as the sole senior debt underwriter. Post the award of the project to the Marubeni-led consortium, the bank successfully syndicated the financing, attracting a blend of local and international banks to participate.
The financing for the Waste-to-Energy Project was met with overwhelming interest, being significantly oversubscribed. This high level of interest reflects the strong confidence in the project's viability and its alignment with global sustainability goals. The oversubscription allowed for a diverse mix of lenders, enhancing the financial robustness and credibility of the project.
Standard Chartered’s extensive involvement in the project included roles as Pre-Bid Lead Bank, Documentation Bank, Bookrunner, Initial Mandated Lead Arranger, Green Loan Coordinator for Tadweer Group’s inaugural Green Financing, Hedging Bank, Sole VAT Lender, sole Equity Bridge Loan (EBL) Lender and Hedge Bank to Tadweer, Global Facility Agent, Commercial Facility Agent, Offshore Security Agent, and Onshore Security Agent. The financing will also benefit from being classified as a green loan which is a key milestone for the project. This comprehensive engagement underscores the bank’s dedication to the successful execution and sustainability of the project.