GDF Suez closes $3.25 bln financing for Qatari desal

GDF Suez Energy International, in a consortium with Mitsui, Shikoku Electric Power Company, and Chubu Electric Power Company, its partners Qatar Electricity and Water Co., and Qatar Petroleum completed the limited-recourse financing of the Ras Laffan C power and water desalination project.
Japan Bank for International Cooperation (JBIC), Export Development Canada (EDC), Islamic Development Bank (IDB), and a syndicate of 21 international and regional banks are providing the US$ 3.25 bln loans, out of which US$ 300 mln will benefit from a guarantee from the Italian Political Risk Insurance Center "Istituto per i Servizi Assicurativi del Credito all'Esportazione" (SACE). This financing includes a tranche of Islamic financing (US$ 250 mln).
The total investment cost is expected to be over US$ 3.8 bln.
The consortium owns 40% of Ras Girtas Power established to develop the project, with the remaining 60% held by Qatar Petroleum and Qatar Electricity and Water.
With a capacity of 2,730 MW and more than 286,000 cu.m. desalinated water per day, Ras Laffan C will be the largest power and water plant in the country. The electricity and water will be sold through a 25 year Power and Water Purchase Agreement with Qatar General Electricity and Water Corp. (KAHRAMAA).
Ras Laffan C should be operational by April 2011 with an early power and water phase by May 2010 significantly contributing to the development of the power and water sector infrastructure in Qatar which is called for to ensure the country’s stable economic growth.
In the Middle East, GDF Suez will now have a direct equity interest in over 13,500 MW and more than 2 mln cu.m. of water per day making it the leading private power developer in the Gulf region with operations in Oman, Abu Dhabi, Bahrain and Saudi Arabia.