KfW IPEX-Bank finances combined cycle gas-fired IPP at Qurayyah, Saudi Arabia
Frankfurt / Main (ots)
- KfW IPEX-Bank is providing nearly EUR 100 million for the
construction of the world's largest combined cycle power plant
(net capacity approximately four gigawatts) - Key technology is being provided from Germany to deliver the
highest efficiency with reduced carbon emissions - The project represents a major boost for exports from Siemens to
the high-growth market of Saudi ArabiaKfW IPEX-Bank is participating in the financing of the construction of the new Qurayyah IPP in the Kingdom of Saudi Arabia. With an installed capacity of approximately four gigawatts, the project on the Arabian Gulf will be one of the world's largest and most advanced combined cycle power plants (CCPP). At the heart of the plant will be high-efficiency Siemens gas turbines which achieve reduced carbon emissions through highest conversion rates. The project's owners plan to bring the new power plant online in 2014.
A total of USD 2.8 billion (around EUR 2 billion) will be invested in the new plant. As a member of a banking consortium with Saudi Arabian and international banks supported by further Export Credit Agencies, KfW IPEX-Bank will be contributing a Euler Hermes covered tranche equivalent to nearly EUR 100 million to the overall project financing. The tranche benefits from the officially supported ERP Export Financing Programme and provides attractive 17 year fixed interest rate loans on a CIRR basis (Commercial Interest Reference Rate) to support the financing of the German exports from Siemens AG. These exports include part of the gas and steam turbines as well as various auxiliary equipment. Further gas turbines and the generators will be sourced from one of Siemens's US production facilities. Siemens will also provide many years of servicing and maintenance for the supplied equipment in order to ensure that the power plant maintains its high efficiency over the long term.
Markus Scheer, member of the Management Board of KfW IPEX-Bank, commented: "The Gulf Region is an important high-growth market for the energy industry as well. With this transaction our client Siemens, with their medium-sized suppliers, will once more be providing German key technology. At the same time, we will be helping to protect the climate. Germany's expertise in the area of efficient electricity generation saves millions of tonnes of carbon dioxide emissions each year." Supporting German enterprises in their export business and financing projects aimed at protecting the environment and the climate is an integral part of KfW IPEX-Bank's business spectrum.
The signing of the Qurayyah financing comes only a few weeks after the closing of another major power sector project financing in the Middle East, the two-gigawatt CCPP "IPP Sur" in Oman. As part of a consortium of banks, KfW IPEX-Bank provided a total of USD 120 million (approximately EUR 86 million) towards the financing of the project. A significant portion of this amount was provided with cover from the Japanese Export Credit Agency Nippon Export and Investment Insurance (NEXI). This marked the first time that KFW IPEX-Bank has provided financing under NEXI cover and comes as a direct result of the cooperation agreement on joint export financing signed between NEXI and KfW IPEX-Bank in early November 2011. As in the case of Qurayyah, the equipment sourcing for the Sur power plant includes substantial deliveries from Siemens in Germany.
About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium and long-term lending to boost the export economy, develop economic and social infrastructure and support environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has 526 employees (as of 31 December 2010) and is represented in the key economic and financial centres around the world.
Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Pressestelle: E-Mail: axel.breitbach@kfw.de
Tel. 069 7431-2961, Fax: 069 7431-9409, E-Mail:
info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de
Contact for Journalists:
Thomas Krick, Telefon: +49 (0)69 7431 8454, E-Mail:
thomas.krick@kfw.de.
Original content of: KfW IPEX-Bank, transmitted by news aktuell