The $2.18-billion financing of the Taweelah B Independent Water and Power Project (IWPP) has reached closure.
The project is the fifth IWPP developed in Abu Dhabi under the Government of Abu Dhabi’s highly successful programme for the privatisation of the water and power sector.
Comprising a $1.24-billion term overseas investment loan from Japan Bank for International Cooperation (JBIC) and a $940-million commercial loan tranche from local, regional, and international commercial banks, the commercial financing was structured, led and underwritten by Standard Chartered, BNP Paribas and KfW as structuring banks and mandated lead arrangers.
In addition, Standard Chartered was also the joint documentation bank, joint bookrunner, insurance bank, hedging bank, commercial facility agent, global facility agent, offshore account bank and JBIC coordinator.
Developing the project is a consortium comprising Marubeni Corporation, BTU Power Company, Powertek Berhad and JGC Corporation, together with Abu Dhabi Water and Electricity Authority (Adwea) as a majority 60 per cent shareholder.
It involves the acquisition and expansion of the existing B plant with a power and desalination capacity of approximately 928 MW and 92 MIGD respectively which, after its expansion, would be increased by approximately 1,000 MW and 65 MIGD respectively. Once completed, the combined plant will provide capacity of approximately 2,000 MW of power and up to 160 MIGD of desalination, and will thus be one of the largest power and water desalination plants in the Middle East region.
Abhay Ketkar, director in Standard Chartered’s Project & Export Finance Group in London, said: “The Taweelah B IWPP transaction is the largest private power and water financing in the Arabian Gulf Region to date. Acting as the JBIC coordinator, Standard Chartered Bank worked closely with JBIC to facilitate the structuring and implementation of the financing including the JBIC overseas investment loan.
Said Will Rathvon, managing director and global head of project and export finance, Standard Chartered: “We have a strong regional presence and expertise in the Middle East, and this major transaction is in a key strategic market for the bank. The bank’s leadership role in the Taweelah B financing further demonstrates our commitment to the region and to our global clients.”
Standard Chartered’s project and export finance professionals are based in Singapore, Hong Kong, Mumbai, Delhi, London, New York, Seoul, Tokyo and Dubai, with teams that specialise in mining and metals, infrastructure, renewable energy, power and utilities, oil and gas, portfolio analysis, agency and aircraft finance.
