The consortium of Abu Dhabi National Energy Company (TAQA), Japan’s JERA Company and AlBawani Capital has secured financial closure for Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2) – two greenfield power plants in Saudi Arabia.
Together, the greenfield combined cycle gas turbine (CCGT) power plants will deliver approximately 3.6GW of power generation capacity. The projects are being developed on a build, own, and operate basis and will support Saudi Arabia’s growing energy needs. The plants represent a combined investment of approximately US$4 billion.
TAQA, JERA and AlBawani signed two 25-year Power Purchase Agreements (PPA) with the Saudi Power Procurement Company (SPPC).
Leading regional and international lenders – including Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China and First Abu Dhabi Bank – were involved in the financing through senior debt and equity bridge loans. Senior debt leverage exceeds 80 per cent, reflecting the strong fundamentals of the projects and lender confidence.
Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business, commented: “We are proud to have reached financial close, an important milestone in the progress of the projects that reinforces our position as a partner of choice for world-class utility projects.
“As lead developer of the power plants, we will be bringing our global expertise and experience to the project, in support of the Kingdom of Saudi Arabia’s optimum energy mix ambitions. Notably, the construction of both plants is well underway, with the early works phase concluding recently.
“We are developing the plants to be built for the future utilising the highest efficiency CCGT turbines, which demonstrates our firm commitment to growth and decarbonisation.”
Construction will be undertaken through special purpose entities owned by TAQA (49 per cent), JERA (31 per cent) and AlBawani (20 per cent). Operation and maintenance (O&M) will be carried out by dedicated O&M companies owned by the consortium under the same shareholding structure.
Engineering, Procurement, and Construction (EPC) contracts were awarded to Harbin Electric International and China Tiesiju Civil Engineering Group.
Steven Winn, Chief Global Strategist, JERA, added: “JERA is pleased to achieve the financial closure of the plants as defined under their respective power purchase agreements and finance agreements with the senior lenders.
“It demonstrates our extensive capabilities and global development experience to successfully deliver projects of this complexity. The projects will strengthen JERA’s presence and contribution to the Kingdom in securing a reliable and sustainable energy supply.”
