Water treatment plant receives 'Blue Loan'

The $170.5 million refinancing of the Mundaring Water Treatment Plant (MWTP) in Western Australia has been recognised as Australia’s first ‘Blue Loan’.

Blue finance is an emerging area of climate finance that aims to support the sustainable use of freshwater resources, protect marine environments, and help drive capital towards the ‘blue economy’. Recognised under the Blue Finance Guidelines Version 2.0 from World Bank subsidiary the International Finance Corporation (IFC), the Blue Loan is considered an extension of the more commonly known Green Loan.

MWTP, located around 30 km east of Perth, supplies drinking water to more than 100,000 people in the Goldfields region. It is operated by Helena Water, a consortium that was appointed in 2011 by the state of Western Australia via Water Corporation and comprises Aberdeen Investments, Acciona Agua and TRILITY.

“This project demonstrates how essential infrastructure can deliver real community value — providing water to more than 100,000 people in the Goldfields region while achieving strong environmental outcomes to help protect vital water resources,” said Jaime Gutierrez, Director at Aberdeen Investments Concession Infrastructure team.

Helena Water, supported by its financial advisor Planum Partners, and banking partners Commonwealth Bank of Australia (CBA) and Banco Bilbao Vizcaya Argentaria (BBVA), which acted as Joint Sustainability Coordinators, refinanced the facility in March 2026 as a Blue Loan.

The IFC’s Blue Finance Guidelines Version 2.0, released in September 2025, support the credible application of the Blue label to assets and projects that make a substantial contribution to the sustainable use of freshwater resources, while managing relevant environmental and social risks and opportunities.

“Helena Water’s pioneering transaction is supported by its commitment to responsible freshwater management. Introducing Blue Loans to the Australian market is an important step in expanding the breadth of sustainable finance issuance, while directing capital to essential water infrastructure that supports a resilient, future-ready economy,” said Charles Davis, Managing Director Energy, Commodities and Sustainability at Commonwealth Bank.

The treatment plant’s eligibility under the Blue Finance Guidelines is underpinned by its sustainability credentials. Designed with a ‘whole-of-life’ sustainability approach that balances environmental protection with long-term operational efficiency, MWTP operates with a 99% recycling rate for waste, zero water loss and a growing share of renewable energy.

Advanced treatment technologies and circular processes further maintain high water quality, minimise chemical use, and eliminate landfill waste. The plant has also invested in electric vehicle charging for staff and visitors and a new EV for use onsite.

“We are pleased to support Helena Water to structure the Blue Loan, which highlights the relevance of sustainable finance to a broad range of infrastructure assets with unique considerations, such as the protection and efficient management of scarce water resources,” said Seth Munday, Managing Director responsible for Project Finance Asia Pacific at BBVA.

Planum Partners CEO Shaun Newing saw this as a milestone for MWTP and the country’s sustainable infrastructure financing.

“Achievement of the Blue Loan with a supportive Second Party Opinion is a great result for our clients Aberdeen Investments, Acciona Agua and TRILITY. This highlights the role infrastructure can play in delivering clear, measurable environmental outcomes,” Newing said.

Image credit: Aerial view of the Mundaring Water Treatment Plant. Image: Supplied