JBIC is lending up to $645 million of the total debt of $1.43 billion to a joint venture project company indirectly owned by Sumitomo Corporation, Electrabel S.A. (a subsidiary of GDF Suez), Abdullah Hamad Al Sagar & Brothers, the Kuwait Investment Authority, The Public Institution for Social Security and Partnerships Technical Bureau in Kuwait with the remainder of the debt being provided by commercial lenders.
The project is notable for being the first to be awarded under Kuwait’s new PPP Laws. Based in Az-Zour 100km south of Kuwait City, it will have a significant role in the development of the power and water sector in Kuwait and will produce 1500MW of power and approximately 107 million gallons of water per day for the country’s Ministry of Electricity and Water under a 40 year build, operate, own and transfer contract.
“We are delighted to have worked with JBIC on this groundbreaking transaction in Kuwait, the signing of which should help unlock the door to a series of large-scale projects currently being considered in the power and other sectors under the new PPP Laws in the State,” John Wilkins, lead partner at Clifford Chance, said.
Finance advice was provided by London partner John Wilkins (lead partner) assisted by Richard Tomlinson and Marianne Khoo, advice on the project documents was provided by Richard Parris (partner) assisted by Hussain Shalchi and engineering, procurement and construction advice was provided by Tim Steadman (partner) assisted by Dan Edwards.
Latham & Watkins, led by partner Craig Nethercott, advised the sponsors and Allen & Overy, led by partner Tim Scales, advised the commercial lenders.