GDF Suez (GSZ.FR) said Friday that GDF SUEZ Energy International, in a consortium with Mitsui (8031.TO), Shikoku Electric Power Company (9507.TO), and Chubu Electric Power Company (9502.TO), and its partners Qatar Electricity and Water Company (QWES.DO), and Qatar Petroleum completed the limited-recourse financing of the Ras Laffan C power and water desalination project.
Japan Bank for International Cooperation (JBIC), Export Development Canada (EDC), Islamic Development Bank (IDB), and a syndicate of 21 international and regional banks are providing the US$ 3.25 billion loans, out of which US$ 300 million will benefit from a guarantee from the Italian Political Risk Insurance Center "Istituto per i Servizi Assicurativi del Credito all'Esportazione" (SACE). This financing includes a tranche of Islamic financing (US$ 250 million).
The total investment cost is expected to be over US$ 3.8 billion. The consortium owns 40% of Ras Girtas Power Company, which has been established to develop the project, with the remaining 60 % held by Qatar Petroleum and Qatar Electricity and Water Company.
With a capacity of 2,730 MW and more than 286,000 m3 desalinated water per day, Ras Laffan C will be the largest power and water plant in the country. The electricity and water will be sold through a 25 year Power and Water Purchase Agreement with Qatar General Electricity and Water Corporation. Ras Laffan C should be operational by Apr. 2011 with an early power and water phase by May.2010.