Winner: Ras Laffan power and water project
In early 2008 the Ras Laffan Power and Water Project (C) began to raise financing in excess of $3.32 billion, the largest non-recourse for a Middle East power and water project. The project had a debt:equity split of 85:15. The debt financing was split into four tranches. Twenty lead arrangers, including EDC of Canada and KfW of Germany, were mandated for one of the tranches. The $1.392 billion 25-year commercial loan had a staggered pricing structure, which rises from 100 basis points after year 10 to 115bp to year 15 and then to 160bp from year 20 onwards. In addition to this commercial tranche there was a $300 million Italian Export Credit Agency covered tranche and a $1.375 billion direct loan from Japan Bank for International Cooperation.
In addition to these conventional loans, Qatar Investment Bank and the Islamic Development Bank provided a $250 million Islamic financing deal with Ras Qirtas Power Company in September 2008. As part of the project, the two banks will finance six multi-effect distillation desalination units, which will operate on a build-own-operate-transfer basis.
Ras Girtas Power Company, whose main shareholders include Qatar Electricity and Water Company and Qatar Petroleum, is developing the project. A consortium of GDF Suez Energy International, Mitsui, Shikoku Electric Power and Chubu Electric Power owns the remaining 40%. The project will be completed in 2011.
