Omdurman Water Treatment Plant

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On the 21st of December 2005, the Government of Sudan awarded the construction of a new water treatment plant in Omdurman to Al Manara Water Company Limited, a local Special Purpose Company (SPC), under a 13 year BOOT contract. The agreement required Al Manara Water Company Limited to design, build and operate the facilities from 2007 to 2020. The SPC was expected to provide bulk supply of potable water to Khartoum State Water Corporation (KSWC) under a take or pay water purchase agreement once the plant was commissioned from 2010 to 2020. The US$120.7 million project reached financial closure the 31st of March 2007. The shareholder in the Special Purpose Company included Biwater (49%), The Netherlands Development Finance Company (FMO) (46%) and the Government of Sudan (5%). The structure of the project was called "capital light structure". There was no direct investment by or dividends paid to the shareholders of the SPC. The project was fully financed through loans and grants accorded to the SPC. The financing structure was organized as follow: US$28.5 million loan from the Netherlands Development Finance Company (FMO), US$33.4 million grant from the Dutch government, US$34.2 million loan from CALYON with guarantee from EXIM Bank of Malaysia, US$24.6 million loan from the Industrial Development Corporation of South Africa Ltd with guarantee from the Export Credit Insurance Corporation of South Africa (Pty) Ltd. The SPC contracted its private shareholder, Biwater to design, build and operate the facilities, under a 3 year turnkey contract (2007-2010) followed by a 10 year operation and maintenance contract (2010-2020) until the loans are fully repaid. Thereafter, the assets were expected to be transferred from the SPC to the Government. It is a "capital light structure" developed by FMO. There was no direct investment by or dividends paid to the shareholders of the SPC. The SPC contracted its private shareholder, Biwater to design, build and operate the facilities under an EPC contract followed by an Operation and Maintenance contract.