ANNOUNCEMENT 13 Dec 2013
On 12 December 2013, the Japan Bank for International Cooperation (JBIC) signed a loan agreement with Shamal Az-Zour Al-Oula.
NUMBER OF INTERVENTIONS
The Japan Bank for International Cooperation, press release of 13 December 2013, Project Financing for Az-Zour North Power and Desalination Project in Kuwait: http://www.jbic.go.jp/en/information/press/press-2013/1213-15608
The loan agreements between JBIC and Shamal Az-Zour Al-Oula in Kuwait has a maximum value of USD 645 million in project financing. The company is a joint venture company established by Japanese Sumitomo Corporation and a number of foreign companies. The loan finances the joint venture company's Az-Zour North Power and Desalination Project in Kuwait. In this project, a combined cycle natural gas-fired power plant and a seawater desalination plant will be built. Hereafter, Shamal Az-Zour Al-Oula will sell the power and freshwater generated to the Ministry of Electricity and Water for a period of 40 years
Project financing loans include preferential terms such as repayments being solely made from the project’s cash flow generation and secured on the basis of the project's assets alone. As such the loan agreement is tied to the project's finances and not the company in question.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.