GE will design and build the power plant under the EPC contract as well as provide parts, repairs and maintenance services at the site for a period of 25 years.
The project is developed by Sharjah Electricity and Water Authority (SEWA) under a BOOT structure supported by a 25-year Power Purchase Agreement (incl. construction).
The Co-developers of this milestone project for Sharjah are GE Capital, Sumitomo Corporation from Japan together with Shikoku Electric Power Company and Sharjah Asset Management.
The project was financed under non-recourse commercial project financing from a group of six leading international banks as well as Japanese Export Credit Agencies JBIC and NEXI.
Clients: GE Capital / Sumitomo Corp / Shikoku Power / Sharjah Asset Management
Enterprise Value: USD 1.5bn
Tribe Role: Co-Financial Advisor
Financial Close: May 2019
Tribe acted as Co-Financial Advisor to the Sponsors from the early stages of the structuring of the USD 1bn non-recourse debt down to execution of Hedging, fulfillment of CPs and Financial close / first disbursement under the loans.
Tribe was responsible for the following roles:
Bank Market sounding
Structuring of the senior non-recourse project financing
Selection of banking group
Negotiation of financing terms including Hedging
Separate negotiation with Japanese ECAs JBIC and NEXI
Review of financial modelling
Commercial support to Sponsors on Project Agreements
Leading on drafting and negotiation of final Financing Agreements
Optimizing lending group strategy up to final Credit Approval, incl KYC
Management of modelling bank
Competitive process for the execution of the Hedging Market rate
Tribe was engaged as financial and commercial advisor to Masdar (a joint project sponsor) for the full duration of the project, from concept stage, through feasibility study, procurement and up to financial close.
Tribe was mandated by Masdar to assist with commercial and financial aspects of developing the first municipal solid waste facility in the UAE. Tribe’s mandate included:
Initial concept development and feasibility study, including determination of the appropriate size of facility and technology selection
Assistance with management of other advisors, including technical, legal, environmental and insurance advisors;
Development of appropriate commercial structure to ensure the bankability of the project;
Financial modelling and business case development;
Drafting of key commercial and financial aspects of project documents, including the waste supply agreement, power purchase agreement, and design, build and operate agreement;
Representing Masdar in the negotiation of key agreements with counterparties;
Representing Masdar in negotiation of the financing agreements with lenders, and interfacing with the lender’s advisors (lenders technical, legal and insurance advisors); and
Assisting the Masdar Project Manager with reports and presentations required for internal approval at Steering Committee and Investment Committee level.
The objective of the project was to structure and deliver the first waste to energy facility in the UAE, and the first project financed waste to energy facility in the Middle East
This was successfully completed with signing of the finance documents in July 2018.
