It is understood that ABC won the advisory mandate against competition from at least two other banks. Financing for the project is likely to be raised through a commercial debt facility backed by a consortium of banks, export credit loans backed by several European export credit agencies (ECAs), and Saudi sources. Project costs are estimated at $1,500 million-2,000 million, but could be more depending on the final size of the complex.

Under the original concept, the project will comprise three units, including an olefins complex with an ethylene cracker, polyethylene and polypropylene facilities, while a second and a third unit are earmarked for amines and methanol production. However, a source close to the project says its final scope has still to be determined.

'The configuration and size of the project depends on the conclusion of agreements for a fixed quantity of feedstock, the size of the land allocated for the project and the debt/equity ratio,' says the source.

A preliminary agreement for the plant's site has already been reached with the Royal Commission for Jubail & Yanbu, which has allocated a 200-hectare plot in Jubail for the complex. Talks are under way with Saudi Aramcoand Saudi Basic Industries Corporation (Sabic) for the provision of butane and other feedstock, but no final agreements have been signed so far. The project is due for completion by the end of 2007.

According to the Linde/PMD MoU, the German company will be the preferred contractor if the project takes off.