Sharjah’s first IPP will have a capacity of 1,800MW
The developer consortium, led by US’ GE and Japan’s Sumitomo Corporation, has secured $1bn of financing for the 1.8GW Hamriyah independent power project (IPP), the UAE emirate Sharjah’s first IPP.
The developers have formed an equity consortium with Japan’s Shikoku Electric Power Company and Sharjah Asset Management (SAM), an investment arm of the government of Sharjah. A consortium of international banks and Japan’s export credit agency, Japan Bank for International Cooperation (Jbic), will provide the $1bn financing required for the scheme.
MEED reported in April that Jbic would provide financing for up to $555m for the Hamriyah IPP. The international banks co-financing the project include Sumitomo Mitsui Banking Corporation, The Norinchukin Bank, Societie Generale and Standard Chartered Bank. Insurance for the loan portion provided by private financial institutions will be partly covered by Japan’s Nippon Export and Investment Insurance (Nexi), a Japanese insurance corporation owned by the Japanese government.
Spain’s Tecnicas Reunidas (TR) has been awarded a contract by the consortium to carry out engineering, procurement and construction (EPC) services in partnership with GE for Sharjah’s first IPP. TR’s contract is worth more than $350m, according to a statement released by the Spanish firm.
The project marks Sewa’s first IPP, with previous plants all having been developed under standard EPC contracts. The project is part of Sewa’s plans to capacity to reduce reliance on imports of electricity from Abu Dhabi, which have grown steadily over the past decade.