Hogan Lovells advises on financial close for Kuwait’s megaproject Umm Al-Hayman

All contracts were made fully effective on July 29 together with the Ministry of Public Works (MPW), the consortium of WTE Wassertechnik GmbH, the International Financial Advisors Holding K.P.S.C (IFA) and the corresponding financing agreements with an international banking consortium. The closing is a highly regarded milestone, which was a challenge for all parties involved in view of the COVID-19 pandemic, which has heavily impacted the Middle East region. 

The realization of the project is very significant for the region. The Umm Al-Haymann wastewater treatment plant, located south of Kuwait City, is geared towards ecological sustainability. With a daily capacity of up to 500,000 cubic metres, it will serve a region of 1.7 million people. The treated water is intended for irrigation in agriculture.

With a complex financing structure including six international and national banks, the project is also one of the largest public-private partnership (PPP) projects in the Middle East. For the first time, a PPP project in this region and with this size has received legal counseling by an international team with German lawyers in the lead. 

Hogan Lovells' advised on all legal aspects including project procurement and tendering, structuring, project contracts, project financing, EPC and operator agreements.

Tobias Faber, leading on the transaction, said: "We are proud that we were able to use our international project and infrastructure expertise to support our important clients WTE and IFA in this project, which is so essential for the State of Kuwait. We could not only rely on our broad technical understanding of such projects, but also on our more than 15 years of experience with complex, often project-financed infrastructure and energy projects in the MENA region". 

Dr. Carla Luh led the negotiation and finalization of the outstanding financing issues towards financial close, Dr. Alexander Stefan Rieger led the negotiation of the project contracts. 

Hogan Lovells Team for WTE and IFA

Frankfurt

Dr. Tobias Faber (Partner), Dr. Alexander Stefan Rieger (Partner), Dr. Fabian Bonke (Senior Associate), Maria Koliasta, Jürgen Keß, Kristina Laewen, Johannes Groß, Katharina Baunach, Jan Hendrik Müller, (all Associates), Camilla Fröhlich (Foreign Associate) (all IERP Infrastructure, Energy, Resources and Projects);

Amy Bruland (Associate, IERP Finance);

Hamburg

Dr. Carla Luh (Partner), Marco Weibrecht (Associate), Anne Gahleitner (Business Lawyer) (all IERP Project Finance);

Dusseldorf

Dr. Heiko Gemmel (Partner), Anne-Svenja de Kiff (Senior Associate) (both Tax);

Dubai

Sohail Barkatali (Partner, IERP Projects), Tony Nicholson (Senior Associate, IERP Finance);

London

James Doyle (Partner), Nicholas Watmough (Senior Associate) (both IDCM International Debt Capital Markets).