Financing of Projects, Plants & Equipment
Investment in water treatment, wastewater treatment, and waste-to-energy plants (and subsequent economical or ecological benefits) is often determined by the availability of funds or credit lines. We use a series of financing concepts to help you with your expansions and projects.
We offer both trade finance packages and project financing for our turnkey projects, plants, systems, and equipment solutions.
Our experienced team will work closely with you to develop a flexible, customized financing package and business model. Using international private banks and financing partners, as well as national and international financing agencies, we are in a position to provide not only domestic financing packages, but also export credit facilities from various countries, thereby hedging foreign-exchange risks.
We provide concepts for operating and financing leases: You operate your plant and equipment and you own it or buy it after a defined period at a predetermined or fair-market value. Each option can have a different impact on your balance sheet and certain tax implications, subject to your locale’s tax regulations. In any case, we provide maintenance and service packages to support those lease options.
We invest in your water facilities and take away your headaches by providing full service, including engineering, financing, construction, maintenance, and operation of plants and facilities. You can concentrate on your core business instead of off-site operations. Our task is to develop a technical, commercial, and financial structure. In addition, we can establish a new entity that will be in charge of building and operating your water facility. According to your requirements, plants and facilities can be transferred to your ownership after a predetermined period of time, at a predetermined value — or no value.
Public-Private Partnerships (PPP)
We structure Public-Private Partnerships according to your requirements. These may involve leasing, operations and maintenance, or BOT concepts. We are in a position to obtain international financing, whether from concessional sources, the World Bank, or private institutions.
- RWL Water supplied Israel Electric Company (IEC) with two containerized ultrapure water systems, including maintenance and servicing of the units by RWL Water. The initial lease period was 12 months, with an option for extension. Lease and service payments were made through monthly fixed installments. After an extended leasing period, RWL Water took back the units for redeployment to other clients. Prior long-standing cooperation between IEC and RWL Water resulted in a favorable credit-risk assessment, so working with an international financing partner, RWL Water was able benefit IEC with low leasing and service fees.
- RWL Water supplied the Cyprus Water Development Department (WDD) with a 10,000 m3/day plant to temporarily relieve a water shortage in Limassol. RWL Water commissioned the plant within five months of the awarding of the order, which reduced the interest charged during construction. Based on WDD’s guaranteed minimum off-take of water, a fair escalation formula for the annual tariff adjustment, and an appropriate collateral structure provided by WDD, RWL Water was in a position to finance the project with an international bank at a favorable interest rate, based on a mix of equity type funds and debt. This financing structure allowed WDD and RWL Water to enter into the contract with an attractive tariff on the water supplied.