Abu Dhabi National Energy Company (Taqa) has confirmed that the planned 2,400MW Fujairah F3 independent power producer (IPP) project in the UAE has reached financial close.

Taqa said the total project will cost approximately AED4.2bn ($1.14bn).

A consortium of international multi-lateral and commercial banks will provide project funding. They are Tokyo-based Japan Bank of International Cooperation (Jbic), Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Trust Bank, France's BNP Paribas and UK-headquartered Standard Chartered Bank.

MEED earlier reported that the $900m soft mini-perm project financing is split between Jbic and five commercial banks.

It is understood the Fujairah F3 plant will use Mitsubishi Heavy Power Systems' JAC-class gas turbine technology.

Ownership structure

The financial closing follows the signing of the power-purchase agreement and shareholder’s agreement in February between Abu Dhabi Power Corporation (ADPower), Emirates Water & Electricity Company (Ewec), Mubadala Investment Company and Japan-based Marubeni Corporation.

South Korea’s Samsung C&T also confirmed in February that it had been awarded the $953m engineering, procurement and construction contract for the scheme.

The government of Abu Dhabi, through Mubadala and Taqa, will own 60 per cent of the project company, while Marubeni will own the remaining 40 per cent.

Marubeni submitted the second-lowest bid of AED16.812 fils a kilowatt hour (fils/kWh) for the combined-cycle gas turbine scheme.

Another team, led by France’s Engie, submitted the lowest bid of AED16.7901 fils/kWh.

France’s EDF and Japan’s Jera submitted a tariff price of AED17.109 fils/kWh for the F3 project.

Ewec, the emirate's power offtaker, received six bids for the contract in October.

Early power

Ewec expects to procure early power from the plant by the summer of 2022. The plant is expected to commence full generation by the summer of 2023.

London-headquartered Alderbrook, US-based White & Case and Germany’s Fichtner provided financial, legal and technical advisory services, respectively, to Ewec. 

Ewec is part of ADPower, which recently transferred its power and water generation assets to Taqa.