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Mubadala achieves financial close on Algerian power plant

ABU DHABI — Mubadala Development Company has concluded financial close on the $900 million development of a 1227 MW gas-fired thermal power plant in the province of Tipaza , Algeria .

The project calls for the development, construction and operation of the plant and will be executed through Shariket Kahraba Hadjret En Nouss SpA (SKH SpA), a newly established company 51 per cent owned by Algerian Utilities International Limited and 49 per cent by three subsidiaries of the Government of Algeria: Sonatrach, Sonelgaz and Algerian Energy Company.

Algerian Utilities International Limited is owned by Mubadala Development and SNC-Lavalin Constructors International Inc, a subsidiary of SNC-Lavalin, a world leader in engineering and construction, and a global player in the development of infrastructure and in operations and maintenance services.

"The conclusion of the Hadjret En Nouss financing is yet another step in Mubadala's strategic plans in the power sector as well as in Algeria where the company is developing large-scale projects in other industries," said Waleed Al Mokarrab Al Muhairi, Chief Operating Officer of Mubadala Development. Design work and construction activities for the new power plant, located to the west of Algiers, has already begun. Once the EPC work is completed in 2008, the electricity generated will be sold to Sonelgaz under a 20-year contract.

"This power plant will add close to 20 per cent of Algeria 's current energy supply, and thus is a decisive step for future social and industrial developments in Algeria . Mubadala wants to be associated with the country's promising growth." Added Mr Al Muhairi.