ABU DHABI, 3 July 2003 — A $1.8-billion loan facility was signed here yesterday for the expansion of Abu Dhabi’s fourth independent power and water project in what was described as “the largest project financing ever” in the capital of the United Arab Emirates.
Project developers International Power of Britain and Japan’s Mitsui and Co. and Tokyo Electric Power Company (TEPCO), signed the facility with a consortium of local and international banks to finance the Umm Al-Nar project. Lead arrangers of the conventional loan include Gulf International Bank, HSBC, Sumitomo, Mitsui Banking Corporation and National Bank of Abu Dhabi, while Abu Dhabi Islamic Bank lead arranged a $250-million Islamic tranche.
“It is the largest project financing ever in Abu Dhabi, demonstrating the confidence and commitment of investors in Abu Dhabi’s power privatization,” said Abdullah Al-Nuaimi, chairman of the privatization department of Abu Dhabi Water and Electricity Authority (ADWEA), during the signing ceremony. Ranald Spiers, regional director of International Power, described the deal as “a landmark.” “It speaks of the success of Abu Dhabi’s privatization program, which continues to move ahead successfully,” he said.
The Umm Al-Nar project currently includes a 1,100-megawatt power plant and a water desalination facility with a capacity of 100 million imperial gallons per day.
