May 20, 2019
Hamriyah Independent Power Project (“Project”) /Construction of First Independent Combined Cycle Power Plant in the Emirate of Sharjah, United Arab Emirates Commences
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo; hereinafter, “Sumitomo”), together with GE Energy Financial Services, Shikoku Electricity Power Company and Sharjah Asset Management, the investment arm of the Government of Sharjah (together “Sponsors”) have achieved financial close and commenced construction of the Project in the Emirate of Sharjah, United Arab Emirates. The Project will be the Emirate of Sharjah’s first large scale independent power project with a plant capacity of approximatively 1,800 megawatts. The Project Company, Sharjah Hamriyah Independent Power Company (“SHIPCO”), incorporated among the Sponsors will build, own, operate and maintain the power plant and supply electricity for a period of 25 years.
The plant, equipped with GE’s state-of the art HA-class technology, will be a highly efficient combined cycle power plant with low CO2 emissions. The plant will consist of three combined cycle blocks, the first of which is expected to come online in May 2021. Upon completion, electricity production will be sold to Sharjah Electricity and Water Authority (SEWA) under a Power Purchase Agreement (PPA) from full plant commercial operation. GE will also provide long term maintenance service including parts, repairs and maintenance services for the main equipment for a period of approximately 25 years.
The Project has been co-financed through project financing by Japan Bank for International Cooperation and private financial institutions including Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, Norinchukin Bank, Societe Generale Bank, Standard Chartered Bank and KfW IPEX Bank. The portion of the loan provided by the private financial institutions is covered by overseas untied loan insurance provided by Nippon Export and Investment Insurance.
The Project was specifically noted as one of “U.S.-Japan Infrastructure Cooperative Activities” and officially announced in a joint statement during the 2nd Public - Private Sector Roundtable Discussion on US - Japan Cooperation held in April 2018.
Sumitomo remains committed to supporting the continuing economic growth in the United Arab Emirates through the delivery of reliable, cost effective, clean and sustainable power from both our existing and new power infrastructure.
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “Achieving Harmony with the Global Environment”, “the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.