Al-Qatrana Power Project

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In October 2009, the US$465 million 373MW gas fired Al-Qatrana Power Project reached financial closure under a 25-year BOT contract. The sponsor was Qatrana Electric Power Company, a Special Purpose Company composed by Korean company KEPCO (65%) and Saudi power company Xenel (35%). The project was awarded by the Government of Jordan to Kepco/Xenel in July 2008, following a competitive tender process between 4 bidders (Kepco/Xenel, Gama Energy/Enara/Mitsubishi, International Power/Saudi Oger/Hanwha and AES Oasis/Mitsui/Tohoku). The bidding criteria remained unknown based on publicly available information. Under the term of the contract, the project would use natural gas from Egypt as main fuel, with National Electric Power Company (NEPCO) responsible for purchasing and supplying fuel to the plant. The private sponsor would sell electricity generated under a 25 year power purchase agreement previously signed with NEPCO. EPC contractor Lotte was expected to subcontract SNC-Lavalin and Fichtner for plant design and engineering. Operation of the plant was expected to be subcontracted to the Korea Southern Power Co (KOSPO), a wholly owned subsidiary of KEPCO. The maintenance services was expected to be subcontracted for the first six years of operation to Korea Plant Services & Engineering Co (KPS), an 80-percent owned subsidiary of KEPCO. The project was financed as follows: - US$131 million equity from the sponsors - US$46.18 million 20-year provided by BNP Paribas and covered by KEXIM - US$46.18 million 20-year loan provided by KfW and covered by KEXIM - US$47 million 20-year loan provided by Proparco - US$75 million 20-year loan provided by Islamic Development Bank - US$115 million 20-year loan provided by KEXIM Advisers on the deal were: BNP Paribas - financial adviser to sponsors, Allen & Overy - legal adviser to sponsors, PB Power - technical adviser to sponsors and Chadbourne & Parke - legal adviser to lenders. The plant was expected to be operational in 2011.