AquaVenture to acquire majority interest in desalination plant in Ghana
AquaVenture Holdings announced that it has entered into a binding agreement with Abengoa Water, S.L.U. to purchase a majority interest in a desalination plant in Accra, Ghana. The plant has the capacity to deliver approximately 18.5M gallons per day of potable water to Ghana Water Company Limited under a long-term, U.S. dollar denominated water purchase agreement. Political risk insurance is provided to the project lenders and project equity sponsors by Multilateral Investment Guarantee Agency, a division of the World Bank. The facility has been operational since 2015 and, through its customer, supplies water to approximately 500,000 residents of Accra. The base purchase price for this interest is approximately $26M, subject to adjustment in accordance with the purchase agreement. Completion of the purchase, which is expected to occur by the end of the second quarter of 2018, is subject to the satisfaction of certain conditions precedent.