Abu Dhabi's Taqa backed alliance get financing for two Saudi power projects

New Saudi projects entail investments of about $4b

Last updated: September 03, 2025 | 09:16

Manoj Nair, Business Editor

2 MIN READ

Taqa powers up its ambitious Saudi projects by closing a near $4 billion financing.

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Dubai: The Abu Dhabi utility company Taqa along with its partners have finalised the financial closing for two greenfield power plants in saudi Arabia.

The two projects - Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2) - also feature Japan's JERA Co. and AlBawani Capital, a subsidiary of AlBawani Holding.

The power plants represent an investment of around $4 billion.

Also Read: Abu Dhabi's Taqa gets Dh8.5b loan facility for more expansion

Earlier, two 25-year power purchase agreements (PPA) were signed between Taqa, JERA and AlBawani, under the supervision of the Saudi Ministry of Energy in partnership with the Saudi Power Procurement Company.

Together, the greenfield combined cycle gas turbine (CCGT) power plants will deliver around 3.6 GW of power generation capacity.

The projects are on a build-own-operate basis.

Financing was secured from a consortium of regional and international lenders through senior debt and equity bridge loans.

"Senior debt leverage exceeds 80%, reflecting the strong fundamentals of the projects and lender confidence," said a statement.

Lending institutions include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China and First Abu Dhabi Bank.

Structuring the Saudi deal

Construction will be undertaken through special purpose entities owned by Taqa (49%), JERA (31%) and AlBawani (20%).

Operation and maintenance (O&M) will be carried out by dedicated O&M companies owned by the consortium under the same shareholding structure.

Farid Al Awlaqi, CEO of TAQA’s Generation business, said: "As lead developer of the power plants, we will be bringing our global expertise and experience to the project, in support of the Kingdom of Saudi Arabia’s optimum energy mix ambitions.

"The construction of both plants is well underway with the early works phase concluding recently."

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Manoj NairBusiness Editor

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.