Mactaa, Algeria

What is it?

A $468 million financing package to fund the construction of the world’s largest reverse osmosis plant - a 500,000m³/d SWRO facility at Mactaa in Algeria.

Who is responsible?

Hyflux is the developer and EPC contractor, with the Algerian Energy Company (AEC) taking a 43% stake in the project and Algérienne des Eaux a 10% stake. Banque Nationale d’Algérie (BNA) provided a $350 million 17.2-year loan, while BNP Paribas, Arab Banking Corporation, Calyon, Zurich Insurance and RBS structured a $146 million syndicated facility.

What makes it special?

• Hyflux showed considerable maturity and flexibility in responding to new legislation brought in following the contract award, which required the client to adopt a different ownership structure than had initially been promised.

• Despite a challenging financial environment, the debt package was signed and sealed in less than 12 months from the award date, showing just how far the project finance market in North Africa has come.

• The financing was put together on the back of one of the lowest tariffs in the world for an RO plant ($0.5577/m³), while the EPC cost is one of the most competitive for a large-scale membrane plant anywhere in the world.