JUBAIL, 26 June 2007 — The world’s largest power and desalination project, the Independent Water and Power Project (IWPP), has secured a syndicated loan worth $3.4 billion from international, regional and Saudi banks, Marafiq, the company behind the project, announced recently. The financial arrangement combined both conventional and Islamic financing and is the largest ever in the power industry.
Prince Saud ibn Abdullah Al-Thunayyan Al-Saud, Marafiq’s chairman of the board of directors and chairman of the Royal Commission for Jubail and Yanbu, said all obligations and financial closing of all the necessary agreements were completed on time.
The deal has been completed in collaboration with the developer consortium consisting of Suez Energy International, Gulf Investment Corporation and the Arabian Company for Water and Power Projects.
Saud said in a statement, the IWPP project is a clear demonstration of Marafiq’s strong commitment and effort to becoming the leading power and water supplier in the Kingdom, with its goal of making a major contribution to the national economy. Marafiq is a symbol of the government’s privatization initiatives. The developer consortium has been selected after a competitive bidding process involving three major international consortiums.
The IWPP project will be constructed in the Industrial City of Jubail and will meet the growing needs of industrial and residential customers in Jubail. All surplus production will be earmarked for the rest of the Eastern Province. Site preparation has already started and project is expected to go on stream in March 2010.
