TRIBE advises international consortium on securing USD 1bn project financing for landmark 1,800MW power project in Sharjah

Tribe partnered with Alderbrook Finance to advise an international consortium on the debt financing of the 1,800MW Hamriyah IPP
May 30, 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 (“SAM”) and Shikoku Power on the 1,800MW Hamriyah independent combined-cycle power plant (“IPP”) in Sharjah, the United Arab Emirates.

Acting as the exclusive financial advisors to the sponsors, Tribe and Alderbrook advised on the arrangement of over USD1 billion in senior non-recourse debt financing.  The project was co-financed by Japan Bank for International Cooperation (“JBIC”) 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 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 and reaching full operating capacity 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.”

Media contact

James Cook +971 50 813 0722

About Tribe Infrastructure

Tribe Infrastructure Group is an independent infrastructure financial advisor and project developer headquartered in Abu Dhabi Global Market.  Tribe provides infrastructure and utilities investment services to grantors, developers, investors and lenders, acting as transaction, financial and commercial advisor and co-development partner. Tribe is also active in M&A advisory in the energy sector across the MENA region.

Tribe has extensive experience in advising clients for infrastructure projects with focus on IWPPs, IWPs, ISTPs, Waste to Energy, Renewables and District Cooling.