Abu Dhabi readies $1.1bn for key power project

11 June 2009 – The financing for the $3.2bn Shuweihat 2 power project in Abu Dhabi is expected to be closed by mid-July, with six banks to commit to the remaining $1.1bn commercial loan, said a report.

Each bank will make an investment of about $100m, MEED reported, citing banking sources.

Shuweihat 2 is a greenfield, natural gas-fired installation that will deliver 1500 MW of electricity and 454 610 m³/ day of water.

GDF Suez owns 40 per cent of Shuweihat 2, with the remaining 60 per cent owned by Abu Dhabi Water and Electricity Authority (ADWEA).

An affiliate of Adwea, the Abu Dhabi Water and Electricity Company is the sole off-taker of the output in the plant, as stipulated in the 25-year Power and Water Purchase Agreeement.

Meanwhile, bankers said the long-term financing for the $500m second wastewater treatment plant in Abu Dhabi will be finalised by late June with banks now completing internal approvals.