Tuesday, Nov 22, 2011
TOKYO (Dow Jones)--State-run Japan Bank of International Cooperation said Tuesday that it has signed a contract to lend up to $697 million to Phoenix Power Co., the operator of a 2-gigawatt gas-fired power plant planned at Sur, about 150 kilometers southeast of Muscat, Oman.
Marubeni Corp. (8002.TO) and Chubu Electric Power Co. (9502.TO) signed contracts in July with Qatar Electricity and Water Co. and Multitech LLC to build and operate the plant.
Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ, Standard Chartered Bank's Tokyo branch, Sumitomo Mitsui Banking Corp. and Sumitomo Trust and Banking Co. are also supporting the project, JBIC said in a statement.
Nippon Export and Investment Insurance said it will insure part of the commercial banks' loan, but neither JBIC nor NEXI mentioned the value of the total loan.
Power from the plant will be sold to Oman Power and Water Procurement Co. for 15 years under a long-term contract, providing stable cash flow for the partners, Marubeni and Chubu said earlier.
-By Mari Iwata, Dow Jones Newswires; 813-6269-2798; mari.iwata@dowjones.com
(END) Dow Jones Newswires
22-11-11 0809GMT
