Total project costs for the IWPP, to be built at the oil terminal town of Arzew, are put at $400 million, of which $120 million will be in the form of shareholders’ equity. The remaining $280 million will be raised through debt financing that will be covered by the French export credit agency Coface. The debt tranche, which is being co-ordinated by ABN Amro, is expected to include financing from French development finance institution Proparco, Washington-based Overseas Private Investment Corporation (OPIC) and Saudi-based Arab Petroleum Investments Corporation (Apicorp). Mizuho Financial Groupis advising Kahrama, an 80:20 joint venture between the US’ Black & Veatch (B&V) and Algerian Energy Company (AEC), on the financing (MEED 1:11:02).

Kahrama is also close to awarding the operations and maintenance (O&M) contract for the plant. Once the deal is signed, the O&M company is expected to take a 10 per cent equity stake in the Arzew IWPP, reducing B&V’s stake in the plant to 70 per cent (MEED 28:6:02).