Marafiq project reaches financial close

A consortium consisting of Suez Energy International, Gulf Investment Corporation and ACWA Power Projects, has completed limited recourse financing for the Marafiq Independent Water and Power Project (IWPP) in Jubail, in the north-east of Saudi Arabia.

The Marafiq IWPP, the largest such project currently under development in the world, is a 23-year BOOT (build, own, operate, transfer) contract for a 2,750 MW combined cycle power station and a water desalination facility with a capacity of 800,000 m³ per day. The consortium owns 60% of the project, with the remaining 40% held by Marafiq, the Saudi Electricity Company (SEC) and the Public Investment Fund.

The power and water output from the facility will be sold under a single off-take contract to a wholly-owned subsidiary of Marafiq.

The EPC contract was awarded to a consortium consisting of General Electric, Hyundai Heavy Industries and Société Internationale de Déssalement. A syndicate of 29 international, regional and Saudi banks, led by BNP Paribas, Gulf International Bank and SAMBA Financial Group, is providing loans of $ 3.4 billion.

"This project is the largest project finance deal ever signed in the power sector so far," said Dirk Beeuwsaert, CEO of SUEZ Energy International.

"The arrangement of this combined conventional and Islamic financing providing over 80% of the funds for the project, is a major achievement for all the sponsors."