| Also Known As |
: |
S2 IWPP |
| Country |
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UAE |
| Project Value |
: |
USD 3,200,000,000 |
| Sector |
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Power and Water | IWPP - Independant Water & Power Provider |
|
Contractors |
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Doosan Heavy Industries and Construction Company Limited (Middle East Operation Center)
(Desalination Component) |
Siemens
(Supplier) |
Samsung Corporation
(Power Component) |
| Profile Type |
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Standalone Project
|
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| Completed
|
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Completion: Dec 2011
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| Background |
Ruwais Power CompanyRuwais Power Company (the JV of ADNECADNEC, GDF SuezGDF Suez and MarubeniMarubeni) plans to develop Shuweihat 2 Independent Water and Power Plant (S2 IWPP) - its eighth IWPP.
The purpose of the project is to meet the increasing demand for power and water in the country.
Shuweihat 2 plant will have a capacity of 1,600 MW of power and 100 million g/d of desalinated water. ADNECADNEC is the sole off-taker of the plant's output, under a 20 year power and water purchase agreement. |
| Latest Events |
In December 2011, the project was completed (delayed from September 2011). |
| Previous Events |
In October 2011, the commissioning of the project started.
In September 2011, the construction of the project was in progress.
In November 2010, the construction of the project was in progress.
In March 2009, SiemensSiemens received an order worth USD 469 million to supply the turbines, generators, electrical systems and I&C package SPPA-T3000 for total plant control.
On 11 December 2008, GDF SuezGDF Suez and ADNECADNEC issued a notice to proceed with the construction of the IWPP to the EPC contractors Samsung CorporationSamsung Corporation, Doosan Heavy IndustriesDoosan Heavy Industries and SiemensSiemens.
In July 2008, the BOO contract was awarded to GDF SuezGDF Suez. GDF SuezGDF Suez and ADNECADNEC also signed a 20-year power and water purchase agreement. Also in July 2008, the USD 810 million EPC contract for the power generation facility was awarded to Samsung CorporationSamsung Corporation. The USD 800 million EPC contract for the desalination facility was awarded to Doosan Heavy IndustriesDoosan Heavy Industries. SiemensSiemens will supply the turbines.
On 14 May 2008, bidders submitted their proposals for the BOO contract. The bids submission deadline was previously expected in April 2008.
In late November 2007, ADNECADNEC issued a request for proposals (RFP) to the prequalified companies to bid for the BOO contract.
On 8 November 2007, ADNECADNEC invited two prequalified developer groups: International PowerInternational Power (IP) with Marubeni CorporationMarubeni Corporation, and GDF SuezGDF Suez to submit proposals for the BOO contract , however, the companies did not submit proposals as expected. |
| Scope of Work |
Construction of a combined cycle power and desalination plant with a capacity of 1,500 MW and 100 million g/d of desalinated water.
The plant includes four SGT5-4000F gas turbines, two SST5-6000 steam turbines, six generators, supplied by SiemensSiemens. |
| Financing Source |
HSBCHSBC is the financial adviser. CalyonCalyon, NatixisNatixis and Bayern LB are the mandated lead arrangers.
In mid October 2009, financial closure was reached (initially expected in mid July 2009). The project was financed under a 84:16 debt/equity share. A total of fifteen banks supplied the USD 2.2 billion long term debt. Japan Bank for International CorporationJapan Bank for International Corporation (JBIC) provided a loan of USD 1.1 billion. The remaining USD 1.1 billion of commercial bank debt was supplied by BNP Paribas, CalyonCalyon, NatixisNatixis, Societe Generale, Bayern LB, KfW, Bank of Tokyo Mitsubishi, Mizuho, SMBC and Sumitomo Trust, Samba, HSBCHSBC and Standard Chartered Bank, and National Bank of Abu DhabiNational Bank of Abu Dhabi. The debt tenor is 22 years.
In August 2009, twelve banks provided credit approvals for the remaining USD 1.1 billion long term financing for the USD 3.2 billion Shuweihat 2 power project.
In July 2009, banks were negotiating with ADNECADNEC to get better debt terms (higher interest rates).
15 June 2009 was the deadline for interested banks to provide credit approvals for the remaining long term financing of the project (USD 1.1 billion). GDF SuezGDF Suez invited about 30 banks to provide the commercial long term financing. The following banks were in talks with the developers to participate in the financing: CalyonCalyon, NatixisNatixis, National Bank of Abu DhabiNational Bank of Abu Dhabi, BayernLB, KfW, Standard Chartered, Mizuho Bank, Bank of Tokyo Mitsubishi and Sumitomo Mitsui Banking Corporation.
In the end of May 2009, shareholder GDF SuezGDF Suez, which owns 40% of the equity stake, sold half of its share to the Japanese corporation MarubeniMarubeni (20% holdings). GDF SuezGDF Suez was seeking to secure long term funding through export credit agency from the Japan Bank for International Cooperation (JBIC). A condition to receive long term Japanese financing is to bring in a Japanese partner into the project; thus MarubeniMarubeni's invitation to be an equity partner. JBIC will supply USD 1.1 billion loan (half of the debt required) which will be partially used to refund the USD 900 million bridging loan. ADNECADNEC and GDF SuezGDF Suez aextended their PWPA from 20 to 25 years.
As of March 2009, long term financing for the project to replace the short term bridging loan was not yet secured. ADNECADNEC had the option to issue a bond or seek support from an international government agency, like an export credit agency, due to the difficult credit situation.
In January 2009, ADNECADNEC signed a USD 900 million short term bridging loan with a group of banks to finance the IWPP until it had secured long term financing. The loan will mature in September 2009. Those banks include Standard Chartered bank, CalyonCalyon, NatixisNatixis, Kreditanstalt fuer Wiederaufbau, Bayern LB, and National Bank of Abu DhabiNational Bank of Abu Dhabi.
In October 2008, banks withdrew commitments to finance the project due to the financial crisis. Financial close was initially scheduled for 17 December 2008. |
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