IFC lines up $100m investment in Kharafi National

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The private investment wing of the World Bank is backing the Kuwaiti developer and operator. The move is also a vote of confidence in the development opportunities on offer in Africa

The International Finance Corporation is considering an equity investment of up to $100 million in Kuwait-based Kharafi National, to support the expansion of its water and wastewater business in the Middle East and Africa.

 
Kharafi National operates or manages wastewater treatment facilities with a total capacity in the region of 1.4 million m3/d. Its most significant asset is the 375,000m3/d Sulaibiya RO treatment plant in Kuwait, for which it holds a 30-year build-operate-transfer contract in partnership with GE.
 
It has a total investment plan for the water and wastewater sector worth $250 million over the next 3-5 years, and is keen to pursue opportunities in Egypt, Iraq and South Sudan. Despite the turbulence in Egypt, the company has also said it plans to set up a business hub in the country.
 
While the IFC investment is targeted specifically toward international expansion, Kharafi National will also be looking to expand its footprint in Kuwait in the near future. It is seeking funding for an expansion at Sulaibiya that will take the plant’s capacity up to 600,000m3/d. It is also likely to bid for the Umm al-Hayman project, Kuwait’s second privately-financed WWTP.
 
Kharafi National is currently 80% owned by the Al Kharafi family, and 20% by the Younis family.