Saudi Arabia consortium secures financial close for 2 mega power projects

Gulf Today, Staff Reporter

Aljomaih Energy & Water Company, a leading Saudi investor, developer and operator of utilities and infrastructure projects, along with its consortium members Ajlan & Bros Group, Buhur for Investment Company and the EDF Group, have announced the achievement of the Financial Close of the Taiba-2 and Qassim-2 Combined Cycle Gas Turbine (CCGT) power projects, with a total capacity of 3.96 GW in the Kingdom of Saudi Arabia.

The two projects have been financed through a combination of Equity Bridge Financing and Senior Debt, secured by Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (APICORP), Saudi Investment Bank, Bank Al Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank, for the approximate value of $3.9 Billion (equivalent to SAR 14.6 Billion).

The financing will be instrumental in accelerating the development and deployment of the Taiba-2 and Qassim-2 projects, which will be the first two projects in KSA with a provision for Carbon Capture in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative.

The projects will be equipped with the latest HL-class gas turbines from the German company Siemens, in combination with steam turbines and generators, which will generate approximately 2,000MW of electricity per project.

Commenting on this significant milestone, Ibrahim Al Jomaih, Chairman of the Board of Directors of Aljomaih Energy and Water Company, said, “We are honoured to have been selected by the Saudi Power Procurement Company (SPPC) and the Ministry of Energy, KSA to act as Consortium Lead on the development of Taiba-2 and Qassim-2, the first Combined Cycle Gas Turbines with a provision for Carbon Capture, in the Kingdom.

The successful achievement of Financial Close on these strategic projects is a testament to Aljomaih Energy & Water’s capabilities as a leading developer, for such vital projects, together with the collective expertise of our partners who are working as one team to deliver nearly 4 GW of decarbonized power capacity, to enhance the generation capabilities of the electrical network in the Kingdom of Saudi Arabia - the largest electrical network in the Middle East and North Africa, in line with the Kingdom’s Vision 2030, by applying a circular carbon economy approach.”

"The Taiba-2 and Qassim-2 projects signify Ajlan & Bros Group's unwavering commitment to the region's business landscape and our dedication to advancing the utility sector," stated Ajlan Al-Ajlan, Chairman of the Board of Directors of Ajlan & Bros Group.