Abu Dhabi Mubadala Development Company, the wholly owned investment and development vehicle of the Government of the Emirate of Abu Dhabi, today announced the completion of the limited-recourse financing of the green-field Barka 2 Independent Water and Power Project (IWPP), owned by SMN Barka Power Company SAOC, and the acquisition of the existing Al-Rusail Power Company SAOC in Oman. The financing of the two projects was completed along-side consortium leader Suez Energy and the National Trading Company (Oman).
A syndicate of international and regional banks are providing the US$ 800,000,000 debt package. The syndicate is led by HSBC and Sumitomo Mitsui Banking Corporation, and comprises of KBC, Calyon, Natixis, BNP Paribas, Mashreq Bank, Arab Bank, GIB, Bank Muscat, National Bank of Abu Dhabi, KFW-Ipex, Bayern LB, West LB, Standard Chartered Bank and Mizuho.
“The financial close for the Barka 2 project which was concluded in the record time of 70 days after signing of the relevant project documents is a testimony of Mubadala’s commitment to effective project execution in full support to industry leaders like Suez Energy” remarked HE Khaldoon Khalifa Al Mubarak Mubadala’s CEO and Managing Director.
This investment in Oman is critical for Mubadala not only in terms of the expected economic returns but in the context of our growth strategy in the power sector. The whole experience has been positive and rewarding, starting with our partnership with Suez, the bidding process professionally carried by the Omani authorities and the effort from the various financial institutions and advisors involved’ HE added.
The project, which is part of a comprehensive privatization program of the country’s power sector, consists of the development, construction and operation of Barka Phase II, a 678 MW and 26.4 MIGD (million imperial gallons per day) IWPP to be located in the Sultanate of Oman, as well as for the acquisition of a 100% participation interest in Al-Rusail Power Company, a 665 MW power plant currently owned by the Government of Oman.
The seawater desalination plant of Barka Phase II is based on reverse osmosis technology to be supplied by Degrémont, specialized in water treatment plants within Suez Environment. A special purpose company has been created to undertake the two projects with Suez and Mubadala each holding a 47.5% interest and National Trading Company holding 5% participation.
Mubadala Development is a Public Joint Stock company established and wholly owned by the Government of the Emirate of Abu Dhabi. Its mission is to invest in commercially-viable, strategic, industrial and commercial partnerships.
The company manages a diversified portfolio of local, regional, and international investments. International investments include the Dutch fleet management giant LeasePlan Corporation (25% stake), and a stake in nine oil exploration blocks in Libya. Stakes are also held in the Swiss aircraft and engine services provider SR Technics (40%), the Italian luxury car manufacturer Ferrari (5%), and Piaggio Aero Industries (35%).
In the United Arab Emirates and wider Gulf region, Mubadala Development has invested in, and developed, a number of leading projects including the first GCC cross-border natural gas project, Dolphin Energy (51% majority stake), Aldar Properties, National Central Cooling Company, Abu Dhabi Ship Building, Imperial College London Diabetes Center in Abu Dhabi, Injazat Data Systems, and the Mukhaizna Oil Field developments in Oman.
Mubadala Development signed a joint development agreement with Dubai Aluminum Company (DUBAL) to develop, construct, own and operate a USD8-billion world class green-field aluminium smelter complex with 1.4-million tons capacity a year at the Khalifa Port and Industrial Zone in Abu Dhabi.
Mubadala Development is also leading the development of the UAE University’s new campus in Al Ain City through a public-private partnership initiative.