Just over $1 billion of debt financing has been secured for the Taweelah A1 power generation and desalination plant in Abu Dhabi. The financial package was handled by London-based law firm Norton Rose, acting for the lead arrangers BNP Paribas and Citibank.
The loan will be used to acquire the existing Taweelah A1 power plant and to refurbish, upgrade, maintain and operate it. The upgrading of the power generation facilities will increase their capacity from 255 MW to 1350 MW, making what is claimed to be the world’s largest combined cycle plant. It will increase installed capacity in Abu Dhabi by 25 per cent.
The scheme is sponsored by the Abu Dhabi Water and Electricity Authority (60 per cent), Total Fina Elf (20 per cent) and Tractebel (20 per cent).
The contract includes long term water and power purchase agreements and a gas supply agreement with the Abu Dhabi Water and Electricity Co.
Debt financing for the project includes an 18.5 year, $1 billion senior term loan and an 18.5 year, $15 million standby facility, making it the longest term yet for a loan of this kind. Babcock Borsig, Sidem and GE are subcontractors to the EPC contract and GE will provide technical support under a long term service agreement.
