Mubadala completes financing deal for Barka-2 power plant
Mubadala completes financing deal for Barka-2 power plant
Abu Dhabi Mubadala Development, the wholly-owned investment and development vehicle of the Abu Dhabi government, yesterday said it has completed the limited-recourse financing of the green-field Barka 2 Independent Water and Power Project (IWPP).
Mubadala has also completed the acquisition of the existing Al Rusail Power in Oman, the company said in a statement issued yesterday.
A syndicate of international and regional banks are providing the Dh3.93 billion ($800 million) debt package.
The syndicate is led by HSBC and Sumitomo Mitsui, and comprises of KBC, Calyon, Natixis, BNP Pari-bas, Mashreqbank, Arab Bank, GIB, BankMuscat, National Bank of Abu Dhabi, KFW-Ipex, Bayern LB, WestLB, Standard Chartered Bank and Mizuho.
The financing of the two projects was completed alongside consortium leader Suez Energy and the National Trading Company (Oman).
"The financial close for the Barka 2 project, which was concluded in the record time of 70 days after signing of the relevant project documents, is testimony of Mubadala's commitment to effective project execution in full support to industry leaders like Suez Energy," Khaldoon Khalifa Al Mubarak, Mubadala CEO and managing director said in a statement.
The project, part of a comprehensive privatisation programme of the country's power sector, consists of the development, construction and operation of Barka Phase II, a 678 megawatt and 26.4 million imperial gallons per day IWPP to be located in Oman, as well as for the acquisition of a 100 per cent participation interest in Al Rusail Power Company, a 665 megawatt power plant currently owned by the government of Oman.
The seawater desalination plant of Barka Phase II is based on reverse osmosis technology to be supplied by Degrémont, who are specialised in water treatment plants within the Suez Environment.
A special purpose company has been created to undertake the two projects with Suez and Mubadala each holding a 47.5 per cent interest and National Trading Company holding a five per cent share.
