JBIC stands firm

Abu Dhabi Water & Power Authority’s latest IWPP opened to great fanfare in Fujairah on 9 May. As one of the largest of its kind in the world there was much to celebrate.

However, the project would not have been built at all had Japan Bank for International Cooperation (JBIC) not joined the financing of Fujairah F2. It put forward almost half of the $2.7bn needed to construct the IWPP.

JBIC has an established presence in the region. It is a strong export credit agency (ECA) which has taken bold decisions in the region’s utilities sector and is sufficiently cash rich to back up its decisions.

In spite of the earthquake which struck Japan in March this year, JBIC is set to continue to do so. At the sidelines of the Fujairah F2 inauguration ceremony, the JBIC delegation reiterated its commitment to promoting Japanese companies in the region.

“This inauguration is an accomplishment during very hard times. It is business as usual in many ways – or even more business than usual.”

This is a shrewd move. Japanese developers are unlikely to be awarded the contract to build Saudi Arabia’s next independent power project (IPP) at Qurayyah but they are strong contenders for work in Oman, Kuwait and Morocco.