Press Releases
03/12/2001
International Power, CMS Energy and ADWEA Complete US$ 1.6 billion Financing for World Largest Independent Power and Water Pro
(London, 3rd December 2001) International Power today announced that its joint venture with CMS Energy and the Abu Dhabi Water and Electricity Authority (ADWEA) has secured a US$ 1.6 billion loan to finance construction of the Shuweihat S1 power and water desalination project in Abu Dhabi. International Power and CMS Energy together own 40% of the project on a 50/50 basis. The Abu Dhabi Water and Electricity Authority (ADWEA) holds the remaining 60 percent ownership interest in the project.
The financing structure comprises a US$ 1,285 million 20-year term loan and a US$ 351 million equity bridge facility. The term loan includes a US$ 250 million Islamic tranche arranged by Abu Dhabi Islamic Bank. Lead arrangers for the US$ 1.6 billion construction loan package include Abu Dhabi Investment Company, Barclays Capital, Citibank, N.A., Credit Lyonnais, HSBC, Kreditanstalt fur Wiederaufbau, National Bank of Abu Dhabi, Royal Bank of Scotland, Sumitomo Mitsui Banking Corporation and The Bank of Tokyo-Mitsubishi.
With the Shuweihat financing now in place, we plan to begin construction early in the New Year, and we expect the plant to be in full commercial operation by August 2004.
As previously reported, the Shuweihat S1 project will be Abu Dhabi's largest independent water and power plant. The project includes a gas-fuelled 1,500 megawatt combined cycle power station and a large water desalination facility with a capacity of 100 million imperial gallons per day. It will be built on a green field site close to Jebel Dhanna, 250 kilometres west of the city of Abu Dhabi. The power and water output from the facility will be sold to the Abu Dhabi Water and Electricity Company under a 20-year off-take agreement. International Power and CMS Energy will also jointly operate the facility under a 20-year operations and maintenance agreement.
"This project is a clear demonstration of International Power's strong commitment to both Abu Dhabi and the Arabian Peninsula. The arrangement of this combined conventional and Islamic financing is a major achievement for the Shuweihat sponsors, particularly given the difficult market circumstances", said Peter Giller, International Power's Chief Executive Officer.
For further information:
Media contact (Europe):
Aarti Singhal
+44 (0)20-7320-8681
Investor contact (Europe):
Grant Jones
+ 44 (0)20-7320-8619
Media & Investor contact (United States):
Paul Parshley
+1 508-922-3124
Regional Business contact (Middle East):
Ranald Spiers
+971 2 677 8831
Notes to Editors
For more details about the project please view International Power's announcement dated 15 August 2001 which is available here.
International Power plc is one of the world's leading independent electric generating companies with approximately 8,850 MW (net) in operation, 2,350 MW (net) under construction and approximately 8,000 MW (net) in advanced development. Among the countries where International Power has operating facilities are Australia, the United States, the United Kingdom, the Czech Republic, Portugal, Turkey, Malaysia, Pakistan, and Thailand. International Power was created from the demerger of National Power, and its shares began trading independently on the London Stock Exchange and as ADRs on the New York Stock Exchange on 2 October 2000. The ticker symbol on both stock exchanges is "IPR".
