Barclays has provided a US$43 million project finance facility for the construction of a seawater desalination plant storage and wastewater treatment facilities in the British Virgin Islands.
Barclays has acted as the sole advisor, arranger, lender and facility agent. The successful financial close of the transaction relied upon substantial collaboration between specialist units across Barclays Corporate and Investment Banking.
The financing is backed by a 100% repayment guarantee from UK Export Finance.
The project sponsor is UK firm Biwater, an engineering, water and wastewater provider. The plant will generate 2.3 million gallons of treated water each day and is to be built on a build, operate, transfer structure, with a 16-year water-purchase agreement.
Biwater International Americas director and AEWT president Richard Smith, stated:
Project finance provides the necessary cash injection required for large-scale water infrastructure projects around the world. Biwater's water and wastewater infrastructure project in the British Virgin Islands is one such initiative, which with the support of Barclays and UKEF will benefit both residents and visitors to Tortola Island for years to come.The government had signed the contract with Biwater S.A. last year on February 18, 2010. On July 13th, 2011, the Government signed a Novation Agreement and Collateral Warranties to let the project move forward.