Sharjah Awards Combined-cycle Contract

Mitsubishi Hitachi Power Systems, Elsewedy Electric Win Contract

The emirate of Sharjah in the UAE has awarded a contract for the construction of a power plant to a consortium of developers led by Mitsubishi Hitachi Power Systems, or MHPS, and Elsewedy Electric.
Valued at US$550 million the contract covers all engineering, procurement and construction for the Al Layyah combined-cycle power plant. The giant plant will feature capacity of 1.03 gigawatts and will be owned and operated by the Sharjah Electricity and Water Authority.
Construction is expected to drive breakbulk activity over the next two years with the plant scheduled to come online in in mid-2021.

Elsewedy Electric will be responsible for site preparation, levelling. civil, construction and site utilities for the project, while MHPS scope of works includes fabrication, supply, testing and commissioning of the power block equipment in addition to joint project management.

Breakbulk Transport from Japan
As the third-largest economy among seven emirates within the UAE, Sharjah has seen increasing demand for electricity due to a growing economy. As a result, authorities in the emirate have proposed wide-ranging investment in new infrastructure.

The Japan Bank for International Cooperation agreed terms for a loan with Sharjah Hamriyah Independent Power Co., or SHIPCO, for about US$555 million, and funding is expected to provide a stable power supply to the emirate as well as supporting breakbulk delivery of power generation equipment, to be exported from Japan.
“JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming functions,” a spokesperson for JBIC said.

QI-ESG Financing

The funding will be used to support construction of the Hamriyah Gas-fired combined-cycle Power Plant, under JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth.
“It is co-financed with Societe Generale, Tokyo branch (facility agent); ING Bank, a branch of ING-DiBa AG; and Standard Chartered Bank, Tokyo branch, bringing the total co-financing amount to approximately USD482 million,” a spokesperson for JBIC said.