KfW IPEX-Bank joins in the financing of Fadhili Independent Power Project in Saudi Arabia
KfW IPEX-Bank is part of an international banking consortium financing ENGIE’s greenfield Fadhili independent power project (IPP) in Saudi Arabia. Total investment cost for the most efficient cogeneration plant in the country is USD 1.2 billion. It will be partially financed through USD 950 million of non-recourse project finance debt provided by six banks including KfW IPEX-Bank. Located in the east of Saudi Arabia, 50 kilometers northwest of Jubail Industrial City, the Fadhili project is a highly efficient combined cycled gas power plant with a capacity of 1,507 MW. It will produce the equivalent of the electricity consumption of 1.4 million people. It will also produce 1,447 tons per hour of steam and 768.8 tons per hour of feed water.
Saudi Electricity Company (SEC) will be the off-taker for electricity and Saudi Aramco for the steam and feed water under 20-year Purchase Agreements. ENGIE will have a 40% equity ownership in the project company, SEC will hold 30% and Saudi Aramco Power Holding Company (SAPHCO) 30%. ENGIE will work on this project together with South Korean Doosan Heavy Industries & Construction Co. for Engineering, Procurement and Construction (EPC) and with Siemens for the gas turbines supply. The technology used will ensure that the stringent emission requirements imposed on the project (less than 9 parts per million NOx) are respected. The scope of work will also include the construction of a 380 kV substation to be transferred to SEC in 20 years for ownership, operation and maintenance. The commercial operation of the Fadhili plant is scheduled at the end of 2019.