GE Energy Financial Services (EFS) and its partners have obtained $1bn in project financing for the 1.8GW independent combined cycle power plant in Sharjah, United Arab Emirates (UAE).
The partners include Japan’s Sumitomo, Shikoku Electric Power and Sharjah Asset Management and financing was provided by Japan Bank for International (JBIC), Japan’s export credit agency (ECA) and other private financial institutions.
GE EFS global power leader Susan Flanagan said: “Sourcing financing from the public and private sectors to fund Sharjah’s first independent combined-cycle power plant demonstrates the region’s attractiveness for foreign investment and GE’s ability to connect global capital to significant infrastructure projects.”
JBIC will provide a second tranche under its ‘Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth’ (QI-ESG) initiative, which was launched by the Government of Japan last summer.
In order to build, own and operate the project, the co-developers GE EFS and Sumitomo have also created a new equity consortium with Shikoku Electric Power and SAM.
The project will feature three combined cycle blocks, and will sell its electricity production to SEWA under a 25-year Power Purchase Agreement (PPA). It is expected to reach full commercial operations by the summer of 2023.
GE will supply three 9HA gas turbines, three steam turbines, six generators, three heat recovery steam generators (HRSG) and turnkey engineering, procurement and construction (EPC) services for its flagship power plant in Sharjah.
Additionally, GE has agreed to provide parts, repairs and maintenance services for the power generation assets at the site for a period of 25 years.
Once completed, the 1.8GW project will be the first independent combined cycle power project in the emirate of Sharjah.