TAQA, JERA and AlBawani Achieve Financial Close on $4 Billion Power Projects in Saudi Arabia

Abu Dhabi National Energy Company PJSC, one of the largest listed integrated utility companies across Europe, the Middle East, and Africa, together with JERA Co., Inc., Japan’s largest power generation company, and AlBawani Capital, a subsidiary of AlBawani Holding, have announced the successful financial close for two greenfield power projects in the Kingdom of Saudi Arabia: Rihab ElAwal Power Company, also known as Rumah 2, and Nawras Power Company, also known as Al Nairyah 2.

This milestone, overseen by the Saudi Ministry of Energy in collaboration with the Saudi Power Procurement Company, follows the signing of two 25-year Power Purchase Agreements with the consortium. The projects will deliver approximately 3.6 gigawatts of new power generation capacity through advanced combined cycle gas turbine plants, developed on a build, own, and operate basis to meet the Kingdom’s growing energy demand.

The plants together represent an investment of around 4 billion US dollars, equivalent to approximately 14.7 billion dirhams. Financing was secured through a consortium of leading regional and international banks via senior debt and equity bridge loans, with debt leverage exceeding 80 percent. Lending institutions include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and First Abu Dhabi Bank. Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business, said: “We are proud to have reached financial close, an important milestone in the progress of the projects that reinforces our position as a partner of choice for world-class utility projects. As lead developer of the power plants, we will be bringing our global expertise and experience to the project, in support of the Kingdom of Saudi Arabia’s optimum energy mix ambitions. Notably, the construction of both plants is well underway with the early works phase concluding recently. We are developing the plants to be built for the future utilising the highest efficiency CCGT turbines, which demonstrates our firm commitment to growth and decarbonisation.”

Steven Winn, Chief Global Strategist, JERA, commented : “JERA is pleased to achieve the financial closure of the plants as defined under their respective power purchase agreements and finance agreements with the senior lenders. It demonstrates our extensive capabilities and global development experience to successfully deliver projects of this complexity. The projects will strengthen JERA’s presence and contribution to the Kingdom in securing a reliable and sustainable energy supply. The projects shall have decarbonisation provision in line with JERA’s goal of achieving net-zero by 2050. We congratulate all stakeholders on achieving this major milestone.”

Eng. Fakher AlShawaf, Group CEO of AlBawani Holding, added: “Achieving financial close marks a significant milestone in AlBawani’s ongoing commitment to supporting the Kingdom’s energy transition, in alignment with the ambitious goals of Vision 2030, and in partnership with TAQA and JERA. These strategic projects will deliver reliable, sustainable energy solutions and contribute meaningfully to Saudi Arabia’s long-term growth and prosperity.”

Ownership of the special purpose vehicles will be divided among TAQA with 49 percent, JERA with 31 percent, and AlBawani with 20 percent. The same shareholding structure will apply to the dedicated operation and maintenance companies. Engineering, Procurement, and Construction contracts have been awarded to Harbin Electric International Co. Ltd. and China Tiesiju Civil Engineering Group Co. Ltd. Both plants will deploy highly efficient combined cycle gas turbine technology with provisions for future carbon capture integration, in line with Saudi Arabia’s decarbonization targets under Vision 2030 and the Saudi Green Initiative, which seeks to achieve net-zero greenhouse gas emissions by 2060 through a circular carbon economy.