TAQA, JERA, And AlBawani Announce Financial Closing For Rumah 2 And Al Nairyah 2 Power Plants In Saudi Arabia

Abu Dhabi National Energy Company (TAQA), JERA Co. from Japan, and AlBawani Capital have successfully closed financing for two new power plants in Saudi Arabia. The projects, Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2), were developed under the guidance of Saudi Arabia's Ministry of Energy and the Saudi Power Procurement Company (SPPC). This achievement follows the signing of two 25-year Power Purchase Agreements.

The combined cycle gas turbine (CCGT) power plants will generate about 3.6 GW of electricity to meet Saudi Arabia's increasing energy demands. These projects are being developed on a build, own, and operate basis, representing an investment of approximately US$4 billion or AED14.7 billion. Financing was secured through senior debt and equity bridge loans from a consortium of regional and international lenders.

The financial structure includes over 80% senior debt leverage, indicating strong project fundamentals and lender confidence. Lending institutions involved are Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and First Abu Dhabi Bank.

Construction will be managed by special purpose entities owned by TAQA (49%), JERA (31%), and AlBawani (20%). Operation and maintenance will be handled by dedicated companies under the same ownership structure. Engineering, Procurement, and Construction contracts were awarded to Harbin Electric International Co. Ltd and China Tiesiju Civil Engineering Group Co. Ltd.

The plants will use advanced CCGT technology designed for future carbon capture integration to support decarbonisation goals outlined in Saudi Vision 2030. These initiatives align with the Saudi Green Initiative's aim to achieve net-zero greenhouse gas emissions through a circular carbon economy by 2060.

Siemens Energy LLC was chosen as the Original Equipment Manufacturer for these projects. The O&M companies have entered into Long Term Service Agreements with Siemens Energy LLC to ensure optimal performance and reliability.

Stakeholder Statements

Farid Al Awlaqi from TAQA expressed pride in reaching financial closure: "We are proud to have reached financial close... As lead developer of the power plants... Notably, the construction of both plants is well underway with the early works phase concluding recently."

Steven Winn from JERA highlighted their achievement: "JERA is pleased to achieve the financial closure... It demonstrates our extensive capabilities... The projects shall have decarbonisation provision in line with JERA’s goal of achieving net-zero by 2050."

Eng. Fakher AlShawaf from AlBawani Holding stated: "Achieving financial close marks a significant milestone... These strategic projects will deliver reliable, sustainable energy solutions..."

The projects aim to support Saudi Arabia's energy mix ambitions while ensuring a reliable energy supply. They reflect a commitment to growth and sustainability in line with Vision 2030 goals.

With inputs from WAM