(MENAFN- Kuwait News Agency (KUNA)) Gulf Investment Corporation (GIC) announced on Sunday that in cooperation with GDF SUEZ, they have completed the limited recourse financing of the Al-Dur Independent Water and Power Producer (IWPP) project -the largest privately-owned industrial project in Bahrain- with the cost of USD 2.1 billion.
The Kuwait based corporation said in a press release that "Financing a project of this size is a landmark in the financial markets after the advent of the economic crisis." On the 28th of August 2008, the Project was awarded to GDF SUEZ and GIC by the Bahrain Ministry of Finance following an international competitive tendering process.
The short-term innovative financing solution was put into place due to the global financial crises and the adverse lack of liquidity.
GIC and GDF SUEZ upheld their commitment to the Government of Bahrain and equally-funded project work, where the Project is presently almost 30% completed and is expected to meet the target completion dates agreed with the Government of Bahrain.
The Project will deliver electricity and water to the Electricity and Water Authority (EWA) under a twenty five-year Power and Water Purchase Agreement (PWPA).
The Project consists of a Combined Cycle Gas Turbine power plant and a Reverse Osmosis (RO) technology desalination plant.
The complex will have a capacity of 1,240 MW of power and 218,000 cubic metres p/d (48 million imperial gallons per day) of water. The Project is the third IWPP being developed in the Kingdom of Bahrain.
The EPC contract was awarded to Hyundai Heavy Industries (HHI). General Electric will supply the power plant turbines. Degremont, a subsidiary of SUEZ ENVIRONMENT and a world leader in water treatment and desalination, will supply and install the RO desalination facility, which is highly flexible, efficient and environmentally friendly.
CEO of GIC Hisham Al-Razzuqi said, "Achieving financial close on a project of this size, in this market, is indeed a great achievement. When the financial crisis hit the world markets, GIC and GDF SUEZ stood by their commitments in extremely adverse conditions.
He added, "We committed considerable resources and were determined to see this project completed on schedule.
entry of such fine institutions into Al Dur IWPP as "shareholders is a further recognition of the merits of the project", in addition he expressed "We are pleased to have with us again, the Social Insurance Organisation, our partners in Al-Ezzel Power Company.
As we welcome our new partners: Instrata, Bahrain Islamic Bank and First Energy Bank and recognize the role played by Capital Management House in raising support for the project." On the other hand, CEO of GDF SUEZ Energy Middle East-Asia Africa Guy Richelle said,"The success of this major finance agreement, the first to be finalized in the Gulf this year, is strong evidence of the confidence of the banking community in the strength of the consortium and the economic development of Bahrain.
He expressed "We are proud that together with GIC, we have been able to contribute to the timely completion of the project by providing the interim financing and the necessary guarantees in a time of significant uncertainty, which is a strong testimony to our respective commitment to the Kingdom of Bahrain and to the region".
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