Al Mirfa (Project Wave) Independent Water Treatment Project

Al Mirfa, known as Project Wave, is a groundbreaking $2.2 billion initiative by ADNOC and TAQA to establish an independent water treatment and transportation system. This project replaces ADNOC’s aging aquifer injection infrastructure, improving energy efficiency by up to 30%.
September 25, 2023

Key objectives of the project include improvements in operational efficiency, reduction in water costs, and attracting foreign and local investment while maximising in-country value. 

ADNOC and TAQA hold a joint 51% stake in the project company, with the remaining 49% owned by a consortium of Orascom Construction and Metito Utilities. 

This innovative project integrates advanced water treatment technology, extensive infrastructure upgrades, and efficient resource utilisation, solidifying ADNOC and TAQA’s commitment to sustainable energy operations. 

Tribe’s Role 

Tribe Advisory (Tribe) was selected as the sole financial advisor for phase one of Project Wave, bringing extensive experience in structuring and securing financing for large-scale infrastructure projects.  

Tribe collaborated with a diverse consortium of local and international banks to secure financing. The financial structure included a combination of commercial and Islamic facilities, ensuring a comprehensive financing package that met the needs of all stakeholders involved. 

Tribe’s responsibilities included: 

Bid Plan and Project Document Review 

  • Review of the RFP and provision of recommendations for optimisation within the bid framework.
  • Review of all Project Documents, suggesting improvements from a Sponsor perspective as well as ensuring their bankability and alignment with lender expectations.
  • Suggesting and managing the clarifications process from a commercial standpoint. 

Financial Modelling and Scenario Analysis 

  • Development of a robust, bespoke financial model meeting the requirements of lenders and Sponsors 
  • Performing valuation and optimisation in order to submit the most competitive bid while respecting all the requirements of all the individual Sponsors  
  • Preparation of investment committee presentations and all required analysis to articulate financing strategies and sensitivities to market and operational changes.

Debt Raising

  • Securing committed debt financing to support the bid, coordinating the process of pre-bid due diligence and credit approval 
  • Negotiation of financing term sheets and commitment letters with a broad range of potential lenders  
  • Delivering lenders’ initial credit approval with regard to a complex project and contracting structure with a risk allocation diverging from typical regional precedents 

Financial Closing 

  • Coordination of the due diligence, approval process and closing process of the lenders, including detailed and comprehensive technical and legal due diligence necessary to deliver lenders’ approval on the complex project and contracting structure 
  • Negotiation of the financing documentation with a large lender group 
  • Advising on the hedging strategy including bespoke elements to cover ADNOC’s interest rate risk over the entire concession tenor despite the short tenor of the initial Hard Mini Perm debt. 

James Cook, CEO-Advisory, Tribe

“Project Wave highlights our ability to navigate complex financial landscapes, tailoring strategies that deliver exceptional value to our clients. This initiative exemplifies how expert financial planning and advice an catalyse transformative impacts, particularly in enhancing the regions operational efficiency and sustainability.” 

Chris Patt, Executive Director, Tribe

“Project Wave is a defining example of how in-depth analysis and very close engagement and collaboration with lenders can power progress in more complex projects. This $2.2 billion project delivers critical infrastructure in support of the UAE’s sustainability goals and paves the way for continued improvements in sustainable water management across the region.” 

Tribe’s advisory services enabled Project Wave to reach financial close within an accelerated timeline. This achievement was underpinned by a robust financing structure provided by a group of international and local banks . The project is now positioned to enhance ADNOC’s operational sustainability while supporting the UAE’s key strategic activities.  

About Tribe 

Tribe Infrastructure Group (Tribe) is focused on realising national ambitions through innovative financing and development of critical infrastructure.  Headquartered at the Abu Dhabi and with offices in London, Riyadh, Manila and Sydney, Tribe operates as an independent and agile partner, strongly grounded in responsible value creation.  Tribe Advisory is the proprietary financial services arm of Tribe Infrastructure Group. Tribe Advisory holds a category 4 licence and is supervised and regulated by the Financial Services Regulatory Authority at the Abu Dhabi Global Market.