GDF Suez-Led Consortium, Partners Complete Financing of Ras Laffan C Project

GDF Suez Energy International, in a consortium with Mitsui, the Shikoku Electric Power Company, and the Chubu Electric Power Company, and its partners Qatar Petroleum and the Qatar Electricity and Water Company have completed the limited-recourse financing of the Ras Laffan C power and water desalination project.

The Japan Bank for International Cooperation, Export Development Canada, the Islamic Development Bank, and a syndicate of 21 international and regional banks are providing the $3.25 billion loans, out of which $300 million will benefit from a guarantee from the Italy-based Political Risk Insurance Center. This financing includes a $250 million tranche of Islamic financing.

The total investment cost is expected to be over $3.8 billion. The consortium owns 40% of the Ras Girtas Power Company, which has been established to develop the project, with the remaining 60% held by Qatar Petroleum and the Qatar Electricity and Water Company.

With a capacity of 2,730MW and more than 286,000 cubic meters of desalinated water per day, Ras Laffan C will be the largest power and water plant in Qatar, said GDF Suez.

The electricity and water will be sold through a 25-year power and water purchase agreement with the Qatar General Electricity and Water Corporation. Ras Laffan C is expected to be operational by April 2011 with an early power and water phase by May 2010.