Green light for new Saudi shipyard as finance deal clinched
Green light for new Saudi shipyard as finance deal clinched
Consortium member Lamprell said in a statement that the JV, International Maritime Industries (IMI), started operations after reaching agreement for a loan from the Saudi Industrial Development Fund (SIDF).
SIDF agreed in principle last year to provide $1 billion in financing for the ambitious project.
IMI shareholders include UAE-based Lamprell, Aramco, National Shipping Co. of Saudi Arabia (Bahri) and South Korea’s Hyundai Heavy Industries Co.
An Aramco executive will be CEO of the project, which Aramco has previously said will cost about $5 billion.
Lamprell’s anticipated total equity contribution over the construction period is up to $140 million, Lamprell’s statement said.
The nearly 12 million square-meter facility is planned to have an annual capacity to manufacture four offshore rigs and over 40 vessels, including three Very Large Crude Carriers (VLCCs), and service over 260 maritime products.
The Lamprell statement said the deal was “for the establishment of a major maritime yard at the Ras Al-Khair site in eastern Saudi Arabia”.
It added that in relation to the shareholders’ agreement, all conditions had now been completed, meaning that IMI could formally commence business.
An important condition was the entry by IMI into the loan agreement with the proposed government lender, SIDF.
“In addition to the previously mentioned offtake agreements and significant investment made by the Saudi government in the facility’s infrastructure, the loan agreement is expected be a cornerstone for the success of the IMI yard,” said Lamprell.
It added: “The construction process at the site is underway with dredging and associated activities in progress. The partners have made significant progress in creating the business infrastructure, including the management organization, the internal governance structure and the detailed business plan.”
Work at the site began after the first capital contribution by each partner in accordance with their pro rata share and in line with the original drawdown schedule. Lamprell’s first tranche amounted to $20 million which was invested in 2017, and would be used to pay for initial start-up costs of the business including staff hire and long lead item procurement.
Linked to one of the offtake agreements, ARO Drilling would order 20 jackup rigs from the IMI yard over the next ten years. Significant component parts of the first two rigs were expected to be subcontracted to Lamprell’s UAE facilities.
Christopher McDonald, Lamprell CEO, said: “We have been working closely with our partners on the establishment of the IMI business over the past few months and we are very pleased to see such tangible progress toward the operational phase, now that the conditions under the shareholders’ agreement have been completed.”
McDonald said that IMI had the capability of becoming a leading regional and global service provider to the rig and vessel markets.
He welcomed the selection of new LJ43 jackup rig designed with GustoMSC for rigs under the offtake agreement.
“This will further strengthen Lamprell’s position in our traditional markets,” said McDonald.
Saudi Arabia has lion’s share of regional philanthropy
- Kingdom is home to three quarters of region's foundations
- Combined asets of global foundations is $1.5 trillion
Nearly three quarters of philanthropic foundations in the Middle East are concentrated in Saudi Arabia, according to a new report.
The study, conducted by researchers at Harvard Kennedy School’s Hauser Institute with funding from Swiss bank UBS, also found that resources were highly concentrated in certain areas with education the most popular area for investment globally.
That trend was best illustrated in the Kingdom, where education ranked first among the target areas of local foundations.
While the combined assets of the world’s foundations are estimated at close to $1.5 trillion, half have no paid staff and small budgets of under $1 million. In fact, 90 percent of identified foundations have assets of less than $10 million, according to the Global Philanthropy Report.
Developed over three years with inputs from twenty research teams across nineteen countries and Hong Kong, the report highlights the magnitude of global philanthropic investment.
A rapidly growing number of philanthropists are establishing foundations and institutions to focus, practice, and amplify these investments, said the report.
In recent years, philanthropy has witnessed a major shift. Wealthy individuals, families, and corporations are looking to give more, to give more strategically, and to increase the impact of their social investments.
Organizations such as the Bill and Melinda Gates Foundation have become increasingly high profile — but at the same time, some governments, including India and China, have sought to limit the spread of cross-border philanthropy in certain sectors.
As the world is falling well short of raising the $ 5-7 trillion of annual investment needed to achieve the UN’s Sustainable Development Goals, UBS sees the report findings as a call for philanthropists to work together to scale their impact.
Understanding this need for collaboration, UBS has established a global community where philanthropists can work together to drive sustainable impact.
Established in 2015 and with over 400 members, the Global Philanthropists Community hosted by UBS is the world’s largest private network exclusively for philanthropists and social investors, facilitating collaboration and sharing of best practices.
Josef Stadler, head of ultra high net worth wealth, UBS Global Management, said: “This report takes a much-needed step toward understanding global philanthropy so that, collectively, we might shape a more strategic and collaborative future, with philanthropists leading the way toward solving the great challenges of our time.”
This week Saudi Arabia said it would provide an additional $100 million of humanitarian aid in Syria, through the King Salman Humanitarian Aid and Relief Center.
The UAE also this week said it had contributed $192 million to a housing project in Afghanistan through the Abu Dhabi Fund for Development.