Rades II

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The first independent power production project in Tunisia, Rades II began production in 2002 and was generating over 20% of the country's power by 2004. The plant was run on a tolling basis with the state utility supplying the gas and buying the power. The orignial joint venture company was called the Carthage Power Company, and was set up between Sithe, US-based PSEG Global and Japan's Marubeni Power Holdings BV, a subsidiary of the Marubeni Corporation. The total cost of the project was expected to be $261 million. Equity accounted for 30% of project cost with 25% paid up front. The debt funding was split between a direct Jexim loan of US$73 million and a commercial bank loan of E92.8m arranged by adviser Sanwa and Paribas. Alstom was the contractor and the plant was to use a GE9E CCGT machine. In December of 2000, Sithe sold its stake in Rades II to co-investors PSEG and Marubeni. PSEG increased its stake to 60% from 35% while Marubeni upped its holding from 32.5% to 40%. In May of 2004, US-based BTU Power Company completed the acquisition of a 60% equity interest in Carthage Power Company (CPC) from PSEG. Under the deal, BTU was to also operate the 471-MW gas-fired power station at Rades through BTU Steag O&M, a joint venture established with Steag Encotec of Germany. None None