Saudi-listed ACWA Power announced the achievement of financial close for two large-scale combined cycle gas turbine (CCGT) power plants in the Kingdom with a combined capacity of 3,600 megawatts (MW).

Rumah-1 and Al-Nairyah-1 Independent Power Plant (IPP) projects with a production capacity of 1,800 megawatts (MW) each are being developed by ACWA Power in partnership with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO).

The consortium secured 12.8 billion Saudi riyals ($3.4 billion) in non-recourse project finance from a consortium of local, regional, and international lenders, along with an export credit agency (ECA), for Rumah-1 and Al-Nairyah-1 IPP projects, located in the Riyadh and Eastern provinces respectively, ACWA Power said in a statement to the Saudi stock exchange on Sunday.

The financing duration is 28 years.

The company has offered guarantees limited to its equity bridge loan, early generation revenue amount, standby equity and reserve account, it said.

The banking group includes Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China (ICBC), and Arab Petroleum Investments Corporation while the ECA was Export-Import Bank of Korea.  

ACWA Power holds 35 percent in each power project with SEC owning 35 percent and KEPCO the remaining 30 percent.

On 31 July, ACWA Power had announced that its consortium with SEC and KEPCO signed senior debt financing documents for Rumah 1 and Nairyah 1 IPP projects. The statement had quoted Chief Investment Officer Thomas Brostrom as saying that the 'successful dry financial closure' of the two IPP projects 'underscores investor confidence in ACWA Power's strategic vision and track record.'

The Power Purchase Agreement (PPA) was signed with Saudi Power Procurement Company (SPPC). 

The Rumah 1 IPP Project will be operated by Remal Energy Company as the project company, with a combined financing of SAR 6.4 billion ($1.7 billion) while Nairyah 1 IPP project will be operated by Naseem Energy Company with combined financing of SAR 6.4 billion ($1.7 billion).

Both plants are being designed to allow for the future integration of carbon capture facilities.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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