Tribe Infrastructure finances landmark power project in Sharjah
Abu Dhabi, 19 June 2019: Leading Abu Dhabi advisor Tribe Infrastructure (Tribe), in partnership with Alderbrook Finance, has completed the debt financing for Sumitomo Corporation (Sumitomo), GE Energy Financial Services (GE EFS), Sharjah Asset Management Holding (SAM) and Shikoku Power on the 1,800MW Hamriyah independent combined-cycle power plant (IPP) in Sharjah, United Arab Emirates.
Acting as the exclusive financial advisors to the sponsors, Tribe Infrastructure and Alderbrook have advised the arrangement of over US$1 billion in senior non-recourse debt financing. The project has been co-financed by Japan Bank for International Cooperation and private financial institutions including Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, Norinchukin Bank, Societe Generale Bank, Standard Chartered Bank and KfW IPEX Bank. A portion of the bank funding will be insured by Japanese export credit agency Nippon Export and Investment Insurance (NEXI).
Co-developers Sumitomo and GE EFS have formed an equity consortium for the project with Shikoku Electric Power Company and SAM. The consortium’s role will be to build, own and operate the Project, which will consist of three combined cycle blocks, the first of which is planned to come online in 2021 with a full operation by summer 2023.
In January 2019 GE and Sumitomo signed a 25-year power purchase agreement with the Sharjah Electricity and Water Authority (SEWA) to develop, build and operate the plant, which will be equipped with GE’s latest and most advanced 9H technology. The project marks the first IPP completed by the Government of Sharjah.
GE will supply three 9HA gas turbines, three steam turbines, six generators, three heat recovery steam generators and turnkey engineering, procurement and construction services for its flagship power plant in Sharjah. GE will also provide parts, repairs and maintenance services for the power generation assets at the site for 25 years.
While demand for electricity is expected to continue to expand in Sharjah, the Emirate currently imports about 50% of its power requirement from the Emirate of Abu Dhabi. The remainder is currently being generated by low-efficiency older power stations in Sharjah. This project is accordingly very well aligned with Sharjah’s electricity policy promoting construction of large-scale, highly-efficient combined cycle power plants as a major source of electricity supply.
Commenting on the transaction, Peter McCreanor, CEO of Tribe Infrastructure Group, said “We congratulate Sumitomo, GE and the Sharjah Government for completion of this landmark transaction and are proud to have played a key role in the financing of the project. We look forward to supporting other regional project financings in the utilities, renewables and infrastructure sectors.”
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