Japanese banks to finance power project
Frances Engie is preparing to sign a project finance agreement imminently for its $1.2bn Fadhili independent power project (IPP) in Saudi Arabia.
The financing has four tranches:
- International commercial tranche Japans Sumitomo Mitsui Banking Corporation (SMBC), Bank of Tokyo Mitsubishi UFG and Germanys KfW.
- Local Islamic tranche National Commercial Bank
- Export credit agency tranche with Korean institutions
- An Islamic tranche from the Jeddah-based Islamic Development Bank ($105m)
The 1,504MW IPP will be built on a build, own, operate and transfer (BOOT) basis.
The special project vehicle is 30 per cent owned by SEC, 30 per cent by Aramco and 40 per cent by the private sector partners.
The EPC contractor in the Engie consortium is South Koreas Doosan.
The cogeneration project is scheduled to be developed on a 20-year power, water and steam purchase agreement (PWSPA), with Aramco the offtaker for the steam and water components and SEC the offtaker for the produced electricity.
The proposed IPP will have steam capacity of 3,190,000 pounds an hour and water production capacity of 768.8 tonnes an hour
The IPP is scheduled to become operational by December 2019.
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