Al Waha Signs Financing Agreements

RIYADH, 28 September 2006 — Al Waha Petrochemical Company celebrated signing of the Shariah compliant financing agreements with a group of financing institutions, which is considered “the biggest Islamic financing of a petrochemical project in the Saudi Arabia so far,” at a event held at the Equestrian Club of Riyadh on Tuesday.

“Al Waha Petrochemical Co. is a joint venture company between Sahara Petrochemical Company with 75 percent and Basell International with 25 percent equity,” Sahara Petrochemical Company Chairman Abdulaziz A. Al Zamil said.

Al Waha signed the largest Islamic petrochemical project financing agreements to construct its large petrochemical complex and support facilities to produce propylene and polypropylene in Jubail Industrial City. World-class construction firms constituting a consortium of Tecnimont of Italy and Daelim of Korea have already started performing the design, erection, procurement, construction and pre-commissioning of the project, he added. “We’re celebrating such an occasion because Al Waha Petrochemical Company is Sahara’s first affiliate company and signing such Shariah compliant financing agreements means that we’ve achieved the most important steps toward the completion of this large petrochemical complex, which costs around SR3.83 billion,” Esam F. Himdy said.

The project includes a world scale 450,000 ton per annum polypropylene plant and 460,000 ton per annum propane dehydrogenation plant situation in Jubail Industrial City. Saudi Aramco will supply feedstock of propane. The EPC works of Al Waha Petrochemical Company’s complex are expected to be completed in late 2008 and commence production by the first quarter of 2009. Al Waha will employ around a 400 strong manpower and this number can be increased gradually in parallel with expansion of the company’s projects, Himdy added.

The financing institutions to finance the project with an amount of SR1.89 billion are Arab Banking Corporation, Bank Aljazira, Banque Saudi Fransi, Gulf International Bank, SABB and Saudi Hollandi Bank.