The three partners developing the $2.7 billion Shuweihat S2 independent water and power project (IWPP) in the United Arab Emirates have finalised a debt financing deal in excess of $2 billion.
The financing deal between a consortium of Abu Dhabi Water and Electricity Authority (ADWEA), Marubeni of Japan and French utility GDF Suez and 15 regional and international banks is the largest financing deal in the region this year.
Shuweihat 2 is scheduled for completion in 2011 and will supply Abu Dhabi with 1500 MW of electricity and 454 610 m2/day of water. ADWEA owns 60 per cent of the project, Marubeni 20 per cent and GDF Suez 20 per cent.
The financing facility is a 22-year limited recourse deal for $2.15 billion, almost half of which has been underwritten by the Japan Bank for International Cooperation (JBIC). Other lenders include the National Bank of Abu Dhabi, Bank of Tokyo-Mitsubishi UFJ, Bayerische Landesbank, BNP Paribas, Calyon and HSBC.
When operational, Shuweihat S2 will be managed by a joint venture between GDF Suez and Marubeni, while the electricity and water generated will be sold to Abu Dhabi Water and Electricity Company, an affiliate of ADWEA, for 25 years.
The project partners secured a $900 million bridge financing facility in January 2009 but this expired in September. Securing the long-term facility underlines the strength of the Abu Dhabi economy and also the importance of the project, say the project’s partners.
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