Sidi Krir Power Station

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In July of 1999, InterGen, a Shell-Bechtel venture, achieved financial close on the Sidi Krir 3&4 power plant, a 683-MW natural gas-fired power complex. InterGen was to operate the plant, built 30 kilometers west of Alexandria, for a period of 20 years. Coming online in 2002, the project was Egypt's first independent power project and one of the largest private power stations in the Middle East. The total estimated project cost of US$414 million included construction period costs, guarantee facilities in support of contractual obligations and working capital requirements. A consortium of local banks led by Commercial International Bank, National Bank of Egypt and Misr International Bank and co-arranged by Arab Bank, Banque du Caire/ Cairo Barclays and Egyptian British Bank had underwritten a US$187 million local bank commercial loan, a US$19.5 million contractual guarantee obligation and a US$6 million working capital facility. ABN AMRO, Dresdner Kleinwort Benson, Paribas, Societe Generale and Export Development Corporation of Canada (EDC) arranged the international financing and had underwritten the US$130 million international bank commercial loan. The Central Bank of Egypt guaranteed all Egyptian Electricity Holding Company (EEHC) payments. EEHC provided a 20-year dollar-denominated payment stream and took all electricity market risk, including currency, fuel price and delivery. In September of 2004, Globeleq, the power sector subsidiary of the Commonwealth Development Corporation (UK), agreed to purchase a 61% stake in the power plant from InterGen for an undisclosed sum. The remaining 39% was held by Italy's Edison. Dresdner Kleinwort Benson was the project's financial advisor. None