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ANDOC, TAQA, Orascom Construction join Metito for project worth up to $2.4bn

ANDOC, TAQA, Orascom Construction join Metito for project worth up to $2.4bn
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UAE - Mubahser: A consortium of Abu Dhabi National Oil Company (ADNOC), Abu Dhabi National Energy Company (TAQA), Orascom Construction, and Metito partnered for a joint project estimated at up to $2.40 billion, equivalent to AED 8.80 billion.

The entities will join forces to boost ADNOC’s onshore operations with sustainable water supply, according to a press release. The strategic project will deliver over 110 million imperial gallons per day (MIGD) of nano-filtered seawater through 75 kilometres of transportation and more than 230 kilometres of distribution pipelines and two pumping stations.

Furthermore, the joint venture (JV) will establish a centralised seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi.

The greenfield project will be funded through a special purpose vehicle (SPV) on a build, own, operate, and transfer (BOOT) model for 30 years.

ADNOC and TAQA will jointly hold a 51% stake in the SPV. Meanwhile, Orascom Construction and Metito will own the remaining 49% equity, 24.50% each.

Over 60% of the project value during the development and operation phases will be directed into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme. 

It is worth noting that Nasdaq Dubai-listed Orascom Construction is the consortium leader.

Abdulmunim Al Kindy, Upstream Executive Director at ADNOC, said: “The project will enhance our onshore energy efficiency by replacing less-efficient high-salinity, deep aquifer water systems with a centralized seawater treatment facility and transportation network.”

“With a substantial portion of the project value flowing back into the UAE economy, this landmark initiative will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leadership’s wise directives,” Al Kindy mentioned.

Jasim Husain Thabet, Group CEO and Managing Director of TAQA, commented: “As a major utility, TAQA is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”

Osama Bishai, CEO of Orascom Construction, indicated: “This project also plays a key role in our growth strategy to pursue infrastructure investments that provide both construction opportunities and long-term recurring income.”

Rami Ghandour, Managing Director of Metito, highlighted: “The UAE established its name as the leader for knowledge-based, future-focused economic strategies and a leader in combating climate change and promoting water positivity.

Earlier this month, Orascom Construction announced an equity sale deal with Switzerland-based Sika at a value of EGP 1.80 billion, before tax.

During the first quarter (Q1) of 2023, TAQA posted net profits attributable to the shareholders amounting to AED 11.57 billion, up from AED 1.97 billion in Q1-22.