Renewables giant Acwa Power reached financial close on the Qurayyah independent power project (IPP) expansion in the Eastern Province, according to a disclosure. The project will be developed, built, owned, and operated by Hajar Two Electricity Company — a consortium of Acwa Power, Saudi Electricity Company (SEC), and Hajj Abdullah Alireza & Company.

Who’s in? The SAR 10.8 bn (c.USD 2.9 bn) financing — with a 28-year tenor — was arranged through a group of local, regional, and international lenders including ADCB, Ajman Bank, Alinma, ANB, Banque Saudi Fransi, Boubyan, Commercial Bank of Dubai, Eurobank, HSBC, NBK, Riyad Bank, Saudi Awwal Bank, Standard Chartered, Sumitomo Mitsui Trust Bank, Korea Development Bank, Saudi Investment Bank, and Saudi National Bank.

REMEMBER- SEC and Acwa signed a SAR 13.4 bn power purchase agreement with the Saudi Power Procurement Company for the QIPP expansion back in February. SEC and Acwa each hold a 40% stake in the project, while HAAISCO owns the remaining 20%.

Project details: The project will see the development of a 3.01 GW combined-cycle gas turbine (CCGT) power plant ready for carbon capture and a 380 kV electrical substation. The existing USD 668.3 mn Qurayyah IPP project — touted as the world’s largest combined cycle gas-fired power plant — has a net generation capacity of 3.9 GW, and began commercial operations back in 2015.

Some contracts are already in place: A JV between Egypt’s Orascom Construction and Spain’s Tecnicas Reunidas signed a USD 2.6 bn Engineering, Procurement, and Construction contract with Hajr Two Electricity Company back in March. Later in May, GE Vernova secured an order for gas turbines from Tecnicas Reunidas and Orascom Construction’s JV, set to be installed at the plant.

Tags: