UAE’s First Waste-To-Energy Project Recognized As Deal Of The Year At The IJGlobal Awards 2018

Bee’ah, the Middle East’s sustainability pioneer, and Masdar, the Abu Dhabi Future Energy Company, have announced that their joint project, the Sharjah Waste to Energy Facility, was recognized as the Waste Deal of the Year, for the Middle East and North Africa region, at the IJGlobal Awards 2018. The award was presented at a special ceremony held on the 13th of March 2019, in Dubai.

The IJ Global Awards celebrate excellence in the delivery of challenging deals; and recognize the best-in-class transactions to have closed over the past calendar year, across the international infrastructure and energy sectors. The Sharjah Waste to Energy Facility was named ‘Waste Deal of the Year’, in recognition of the precedent it has set in securing external funding for waste-to-energy projects in the GCC. The first deal of its kind in the region, the project brought together a consortium of 5 banks to provide financing on a non-recourse basis, via a soft mini-perm structure.

HE Khaled Al Huraimel, Group CEO of Bee’ah, said, “In building the UAE’s first waste-to-energy facility, we have crossed a new milestone towards a sustainable future for the energy sector in the UAE. This project has not only positioned the UAE as a pioneer in energy excellence, but also become a case study for how the private sector can be engaged in promoting environment-friendly initiatives. Through their support, our lenders have set an example for how the banking and finance sector can participate in the nation’s sustainability drive. We are honored to receive this award which recognizes the hard work and dedication of our finance teams, and the exceptional teamwork that made this landmark transaction possible.”

The Sharjah Waste to Energy Facility, which is the UAE’s first waste-to-energy facility, is being developed and managed by the Emirates Waste to Energy Company (EWEC), a joint venture formed by Bee’ah and Masdar. Located within Bee’ah’s Waste Management Center in Sharjah, the 30 MW plant will process more than 37.5 tonnes of municipal solid waste (MSW) per hour to generate electricity sustainably; and divert more than 300,000 tonnes of municipal waste away from landfills every year. Operating at full capacity, it will contribute significantly to reaching the UAE’s target of diverting 75 per cent of its solid waste from landfills by 2021, as well as Sharjah’s zero-waste-to-landfill goal.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “It is hugely rewarding to see our joint project with Bee’ah of Sharjah receive further international recognition. Being named Waste Deal of the Year at the prestigious IJGlobal Awards is a tribute to the teamwork and professionalism of all the partners involved.”

“The successful financing agreement behind the Middle East’s first utility-scale waste-to-energy plant will hopefully attract additional investment in clean technologies to Sharjah and the UAE,” Al Ramahi added. “As well as being the first deal of its kind in the region to secure external funding for a waste-to-energy facility, the loan structure paves the way for similar projects to be carried out across the region.”

The 20-year term loan of USD 162 million was procured from a consortium including the Abu Dhabi Fund for Development (ADFD); Abu Dhabi Commercial Bank (ADCB); Siemens Financial Services; Sumitomo Mitsui Banking Corporation (SMBC); and Standard Chartered Bank (SCB).

Last year, the financing of the Sharjah Waste to Energy Facility was recognized as the Structured Loan Deal of the Year at the Bonds, Loans & Sukuk Middle East Awards. Earlier this year, the project was also recognized as the Clean Energy Deal of the Year, for the Middle East and Africa region, at the Project Finance International Awards 2018.