Taweelah B USD2.18 billion Independent Water & Power Project achieves financial close

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 USD 1.24 billion term Overseas Investment Loan from Japan Bank for International Cooperation (JBIC) and a USD 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. The financing was signed on 25th April 2005 in Abu Dhabi.

The Project is being developed by 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% 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."

"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," said Will Rathvon, Managing Director and Global Head of Project & Export Finance, Standard Chartered. "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 & Export Finance professionals are based in Singapore, Hong Kong, Mumbai, Delhi, London, New York, Seoul, Tokyo and Dubai, with teams that specialise in Mining & Metals, Infrastructure, Renewable Energy, Power & Utilities, Oil & Gas, Portfolio Analysis, Agency and Aircraft Finance.