Buyer's Credit for Sharjah Electricity and Water Authority
Supporting Export of Gas-Fired Combined Cycle Power Plant by a Japanese Company as part of Promoting Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth
- Region: The Middle East
- Export Loans
The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) signed on March 28 a buyer's credit agreement (export loan) totaling up to approximately USD241 million (JBIC portion) with Sharjah Electricity and Water Authority (SEWA) in the United Arab Emirates. The loan is provided as part of JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)*1
. It is co-financed with Societe Generale, Tokyo Branch (Facility Agent); ING Bank, a branch of ING-DiBa AG; and Standard Chartered Bank, Tokyo Branch, bringing the total co-financing amount to approximately USD482 million. The co-financed portion will be covered by insurance from Nippon Export and Investment Insurance (NEXI).
SEWA will build a 1,026.3MW gas-fired combined cycle power plant in the Al Layyah power plant already established in the Layyah district of the Emirate of Sharjah (Sharjah). This loan will provide financing for the purchase of a complete set of power generation equipment, including the gas turbine, manufactured by Mitsubishi Hitachi Power Systems, Ltd. This is JBIC's first loan provided to Sharjah.
Sharjah is the third biggest economy among seven emirates within the UAE, following Abu Dhabi and Dubai. The emirate is expected to enjoy stable economic growth. On the other hand, the response to increasing demand for electricity due to growing economy becomes an issue to be addressed in the emirate. This loan is intended to provide a stable power supply to the emirate through financing for the purchase of power generation equipment exported from Japan. The loan will also contribute to maintaining and increasing the international competitiveness of Japanese companies.
As Japan's policy-based financial institution, JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming functions.