UAE 1.8GW thermal project gets project financing  

20 May 2019 - 12:00 am UTC

A group of companies including Japanese trading house Sumitomo Corp. has started construction of the 1.8GW Hamriyah gas-fired combined cycle power plant in Sharjah after signing a project financing agreement.

The consortium – which includes Sumitomo, Shikoku Electric Power, GE Energy Financial Services and Sharjah Asset Management – achieved financial close on 31 March and began work last week, Sumitomo said in a press release today.

The project has been co-financed by the Japan Bank for International Cooperation and private financial institutions including Sumitomo Mitsui Banking Corp., Sumitomo Mitsui Trust Bank, Norinchukin bank, Societe Generale Bank, Standard Chartered Bank and KfW IPEX Bank. The portion provided by the private financial institutions is covered by loan insurance provided by Nippon Export and Investment Insurance.   

Sumitomo declined to comment on details, including on the percentage of costs the project finance will cover. A spokesperson said the project is valued at more than JPY 100bn (USD 908m) without elaborating.

The project will be carried out under a build-own-operate-transfer arrangement and will supply power to the Sharjah Electricity and Water Authority for a 25-year period. The first of three combined cycle blocks is likely to start commercial operations in May 2021. 

 

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