A consortium led by ACWA Power International has entered into a power purchase agreement with Saudi Electricity Company (SEC) to finance, build and operate the Rabigh 2 power project, ACWA said in a statement on Saturday.
The project, located in Rabigh on the western Saudi coast, involves setting up the al-Mourjan for Electricity Production company, a split venture between SEC and the consortium which also includes Samsung C&T.
The project will deliver 2060 megawatts of electricity to SEC under a 20-year agreement, from the scheduled commercial operational date of June 2017.
ACWA said 74 per cent of the nearly SAR5.1 billion ($1.36 billion) project would be financed through senior debt with the rest in the form of equity bridge loans.
Banks contributing to the senior debt include Standard Chartered Bank, KfW-IPEX Bank and Mizuho Bank as well as local banks, including Banque Saudi Fransi, Al Rajhi Bank, National Commercial Bank, Samba Financial Group and Al-Inma Bank.