Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters, has reached the financial close for the Block 4 of its Power Station 5 (PS5) that will add 680.9 megawatts (MW).
The facility is made up of $225 million China Export and Credit Insurance Corporation (Sinosure) supported-facility with a 15-year tenor and a competitive interest rate wherein the principal amount will be repaid over a 15-year period including a 3-year grace period, said an Alba statement.
SEPCOIII along with Mitsubishi Power are responsible to design, engineer, procure, construct and commission the Combined Cycle Gas Turbine Power Block comprising M701JAC gas turbine, an air-cooled version of J-series gas turbines and a steam turbine.
Once completed, the plant will increase the nameplate capacity of PS5 from 1.8GW to more than 2.4 GW, stated Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, during the virtual signing ceremony with Sinosure on Monday (November 14).
Alba Chief Executive Officer Ali Al Baqali, Chief Power Officer Amin Sultan, Chief Financial Officer Bryan Harris joined the virtual ceremony along with senior representatives from SEPCOIII, including its Vice President Jie Li; senior officials from Sinosure Shandong, including its President Wei Shaomin, as well as senior officials from BNP Paribas China and BNP Paribas Middle East, including the Head of Middle East and Africa Amine Bel Hadj Soulami.
Shaikh Daij stated: “We are very pleased to have relied on Sinosure, for the first time in Alba’s history, to finance Block 4 of PS5 and we trust that this transaction will pave the way for future collaborations between Alba, SEPCOIII and Sinosure.
“We are also thankful to receive the backing from our banking partners - BNP Paribas our Global Coordinator Bank as well as HSBC and Citibank the Main Lead Arrangers - in this ECA-supported facility.”
“One of our key initiatives under our ESG Roadmap, Block 4 will support the company in its efforts to decarbonise in line with the kingdom’s goals to reach Net Zero Emissions by 2060 and reduce its overall GHG emissions by 0.5x once completed in Q4 2024,” he said.
Wang Li stated: “As an EPC contractor, Block 4 of PS5 is the second large-scale EPC project contracted by SEPCOIII in the kingdom, we are honoured to witness this significant milestone of financial close, and will make every effort with our core competence and firm commitment to ensure the project to achieve all its goals, for Alba’s responsible and sustainable development, and for the Kingdom's social and economic development.”
Sinosure Shandong Branch stated:“As the only official ECA institution in China, Sinosure supports Chinese contractors, to finance for the sponsors by providing buyer’s credit insurance. The first time to cooperate with Alba is a best example. We’re very honoured to cooperate with Alba. We also sincerely hope that Sinosure Shandong Branch can establish long-term contact and communications with Alba, and fully participate in the financing for Alba’s future projects, fulfill ESG duties, reduce carbon emissions, promote multi-field cooperation and make win-win achievements.”
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