The UK Government has received funding to build a 350km-long drainage network from Iraq’s Al-Hillah region to the south of its capital, Baghdad.
This new drainage system is expected to provide clean, safe water to the residents in these regions.
The network, once completed, will treat up to 20 million cubic metres of water annually, providing superior sanitation to more than 25,000 families in a district that is now unable to treat wastewater caused by the adjacent Euphrates River.
The government’s export credit agency, UK Export Finance, has assured that the Iraqi Government can obtain the £226m ($286.12m) in finance to complete the project.
This funding consists of a guarantee for £113m in financing organised by Standard Chartered Bank as sole Structuring Bank, Mandated Lead Arranger, and Agent, along with a £113m direct loan from His Majesty’s Treasury.
The funds will be transferred to the government of the Republic of Iraq, enabling the Governorate of Babil to choose GCITJ Babel, a UK-based joint venture, to complete the works.
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More than £100m in UK export contracts are projected to be supported by the contract, accounting for over half of the project valuation.
The drainage network and water treatment systems will help minimise the risk of illnesses caused by poor sanitation and flooding caused by stormwater and the adjacent Euphrates River.
Standard Chartered Bank Structured Export Finance global head Faruq Muhammad said: “We are proud to provide UKEF-backed financing for our important client, the Iraqi government, to improve sewage and drainage infrastructure for local communities in the Al-Hillah district, underpinning our here-for-good commitment to make a positive difference in the places we call home.”