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Almar Water Solutions to acquire Mubadala Infrastructure Partners’ investment in Muharraq Sewage Treatment Plant in Bahrain

  • 100,000 cubic meters per day wastewater treatment plant and a sewer conveyance system in Bahrain
  • This acquisition enhances the company’s portfolio of wastewater and reuse assets

Abu Dhabi, United Arab Emirates – 9 May 2019

Almar Water Solutions (“Almar”), a leading water company in the region, announced that it has completed the acquisition of a Sewage Treatment Plant investment in Muharraq STP Company BSC (“MSC”) from Mubadala Infrastructure Partners (“MIP”), an emerging markets infrastructure fund manager.

MSC has a 29-year concession to build, own and operate (“BOO”) a 100,000 cubic meters per day state of the art wastewater treatment plant and a sewer conveyance system in the Muharraq catchment area of the Kingdom of Bahrain. The conveyance system includes the first 16.5 km deep gravity sewer trunk pipeline in the GCC region and a wastewater collection network. The concession was signed with the Ministry of Works in 2011 and the facility commenced operations in 2014. According to the World Health Organization, 40%[1] of wastewater in the MENA region goes untreated making this a critical sector for environmental sustainability. The project was developed in partnership with Samsung Engineering Ltd of Korea and United Utilities International Ltd of the United Kingdom.

Carlos Cosin, Chief Executive Officer of Almar said: “This investment follows our strategy to own and operate water assets in the region and beyond”. This acquisition increases the company’s portfolio of wastewater and reuse assets, reinforcing its activity. This acquisition also provides us with an exceptional opportunity to contribute to the water sector’s development in Bahrain and all GCC countries. Recently Almar Water Solutions, through its parent-company Abdul Latif Jameel, has been awarded a P3 contract to develop a desalination plant in the city of Shuqaiq, on the Red Sea coast of Saudi Arabia. The large-scale plant will have a capacity of 450,000 cubic meters per day, guaranteeing reliable drinking water to over 1.8 million citizens during 25 years. Almar Water Solutions has also recently been awarded another P3 contract to develop Kenya’s first large-scale desalination plant. The project will be located in the North Mainland zone in the county of Mombasa and will have a capacity of 100,000 cubic meters per day, supplying drinking water to over a million people. The plant will be managed and operated for 25 years until it is handed over.

Philip K. Haddad, Managing Partner of MIP commented on the transaction: “Water remains an important focus of our investment strategy. We are proud to have been part of the development and operations of MSC on behalf of our investors. We will continue to focus on investing in differentiated and impactful businesses in key infrastructure sectors such as energy, transportation, social infrastructure and water in emerging markets.” MIP recently sold its investments in Abu Dhabi Ports Operating Company PJSC – Abu Dhabi Terminals and MIP Campus 1, a social infrastructure PPP platform in higher education in Abu Dhabi from its regional flagship fund MIP I. The firm is currently raising its successor fund MIP II with commitments from regional and international investors.

Shearman & Sterling acted as legal advisors to MIP on this transaction. KPMG and Gowling acted as financial and legal advisors, respectively, to Almar Water Solutions.

 

About Almar Water Solutions

Almar Water Solutions is a company specializing in the development, promotion, financing, design and operation of water infrastructure. Its team of professionals, with over two decades of experience in 25 countries leading major water infrastructure projects, works tirelessly to develop integral solutions that meet growing needs for water in the municipal and industrial sectors. https://www.almarwater.com/

About Abdul Latif Jameel

Abdul Latif Jameel refers broadly to distinct separate and independent legal entities whose interests encompass automotive distribution, auto parts manufacturing, financial services, renewable energy, environmental services, land and real estate development, logistics, electronics retailing and media services.  Abdul Latif Jameel positions itself as a preferred business partner primarily for inward investment into the Middle East, North Africa and Turkey (MENAT) region. https://www.alj.com/en/

About Mubadala Infrastructure Partners Limited

Mubadala Infrastructure Partners is an independent fund manager with offices in Abu Dhabi and Johannesburg focusing on infrastructure investments in emerging markets. http://www.mip.ae

 

 For further information

 C/ María de Molina, 39

6th Floor 28006 – Madrid, Spain

T: +34 917 026 712

E: manuel.garcia@almarwater.com

 

[1] Source: Progress on drinking water, sanitation and hygiene: 2017 update and SDG baselines. Geneva: World Health Organization (WHO) and the United Nations Children’s Fund (UNICEF), 2017. Licence: CC BY-NC-SA 3.0 IGO.

Industry leaders Almar Water Solutions and Hassan Allam Utilities form joint venture to develop water projects in Egypt

  • JV agreement between Almar Water Solutions and HA Utilities will work on developing water BOT and BOO projects in the country.

Cairo, Egypt – 10 April 2019

Almar Water Solutions (“Almar”), a leading water infrastructure development company and part of Abdul Latif Jameel Energy, has formed a joint venture with Hassan Allam Utilities (HAU), the utilities and investment arm of leading regional construction and engineering group Hassan Allam Holding (HAH).

Leveraging on the experience of both Almar Water Solutions and HA Utilities management teams in water infrastructure development, the JV will work on developing water BOT and BOO projects in Egypt, with an active role as both a Special Purpose Vehicle (SPV) investor and an Operation and Maintenance (O&M) supplier. The JV strategy will also include acquisitions of brownfield assets and O&M service companies to accelerate recurring cash flow generation.

The JV is currently studying a number of greenfield projects of different sizes with various offtakers.

Commenting on the joint venture, Carlos Cosin, CEO of Almar Water Solutions, said: “We are thrilled to be partnering with a company with such a strong foothold in an extremely exciting market like Egypt, which we feel has significant untapped potential in terms of water infrastructure development. Our partnership with HAU allows us to strengthen our contribution to socio-economic development of the MENA region by extending innovative solutions and expertise within water treatment and desalination across both the municipal and industrial markets.”

Menatalla Sadek, CEO of HA Utilities, added: “Our business model is highly embedded in utilizing our in-house experience and the capabilities of HAH to support and develop the full spectrum of a project, from development and financing to operations and management. Almar’s highly experienced team draws on decades of experience in the industry. This winning combination is exactly what we look for when pursuing JV opportunities and we’re confident that with this partnership, we will be able to further unlock the potential in one of our core sub-platforms, water desalination and treatment.”

About Almar Water Solutions

Almar Water Solutions is a company specializing in the development, promotion, financing, design and operation of water infrastructure. Its team of professionals, with over two decades of experience in 25 countries leading major water infrastructure projects, works tirelessly to develop integral solutions that meet growing needs for water in the municipal and industrial sectors. For more information, please visit https://www.almarwater.com/

About Abdul Latif Jameel

Abdul Latif Jameel refers broadly to distinct separate and independent legal entities whose interests encompass automotive distribution, auto parts manufacturing, financial services, renewable energy, environmental services, land and real estate development, logistics, electronics retailing and media services.  Abdul Latif Jameel positions itself as a preferred business partner primarily for inward investment into the Middle East, North Africa and Turkey (MENAT) region. For more information, please visit https://www.alj.com/

About Hassan Allam Holding

Hassan Allam Holding is a leading Egyptian engineering and construction group whose primary operations include infrastructure, power, industrial, petrochemical and special building projects in Egypt and the MENA region. The founders of Hassan Allam Holding commenced operations in 1936, making it one of the oldest construction groups in the MENA region with a solid reputation, superior technical capabilities, and a diversified portfolio. With a legacy of identifying and investing in attractive infrastructure projects, in the past five years it has delivered over 70 projects worth over USD 3 billion and has a current backlog of around USD 3.5 billion as of May 2018. For more information, visit http://www.hassanallam.com.

About Hassan Allam Utilities

HA Utilities is an asset developer and investment platform for power, renewables, and water-related opportunities that address the underserved energy market and growing demand for infrastructure in Egypt and the region. Established in 2017, the platform focuses on partnerships to develop and operate renewable power as well as water desalination and treatment projects. For more information, visit www.hautilities.com.

 

For further information

Almar Water Solutions                                           

C/ María de Molina, nº 39

6th Floor – 28006 Madrid

T: +34 917 026 712

E: manuel.garcia@almarwater.com

 

Hassan Allam Utilities        

Hoda Yehia

Investor Relations Director

T: +20 2 2265 9027

E: hoda.yehia@hassanallam.com