DEARBORN, Mich., December 3, 2001 — CMS Energy Corporation today announced that its joint venture with International Power plc, in partnership with the Abu Dhabi Water and Electricity Authority (ADWEA), has closed a $1.635 billion limited recourse project financing for construction of the 1,500-megawatt and 100 million imperial gallon per day Shuweihat S1 power generation and water desalination project in Abu Dhabi, United Arab Emirates.
CMS Energy and International Power together own 40 percent of the project on a 50/50 basis and will jointly construct and operate the plant, with ADWEA holding the remaining 60 percent ownership interest. The Abu Dhabi Water and Electricity Company (ADWEC) has contracted, on a long term basis, for the entire output of the plant.
The innovative financing package arranged for the project combines 20-year U.S.$1.285 billion term loan facilities with U.S.$351.5 million construction period equity bridge loan facilities. The bank debt facilities have been arranged by Abu Dhabi Investment Company, Abu Dhabi Islamic Bank, Barclays Capital, Citibank, N.A., Kreditanstalt fur Wiederaufbau, National Bank of Abu Dhabi, Royal Bank of Scotland, The Bank of Tokyo-Mitsubishi, Credit Lyonnais, HSBC and Sumitomo Mitsui Banking Corporation.
"The creative financing package developed for the project has ensured yet another precedent-setting transaction for ADWEA and the Government of Abu Dhabi. CMS Energy is proud to have developed this large-scale project with our partners, ADWEA and International Power, and to have achieved financial closing within four months of signing the project documentation. With the Shuweihat financing now in place, we plan to begin construction within the next several weeks, and expect the plant to be in full commercial operation by mid-2004," said Joseph P. Tomasik, CMS Energy's vice president, development.
The $1.6 billion Shuweihat S1 project includes a gas-fueled 1,500-megawatt combined cycle power plant and a large water desalination facility with a capacity of 100 million imperial gallons per day. The facility will be constructed by a consortium of Siemens AG and Fisia Italimpianti. It will be built on a green field site close to Jebel Dhana, 250 kilometers west of the city of Abu Dhabi.
The Shuweihat project is CMS Energy's second entry into Abu Dhabi, following the successful construction and operation of the 710 megawatt, 50 million imperial gallon per day Al Taweelah A2 power and desalination plant, located on the coast of the Arabian Gulf near Abu Dhabi, in which CMS holds a 40 percent ownership interest. The Al Taweelah A2 power facility entered full commercial operation on October 9, 2001 and is now supplying electricity and water to ADWEC under a long-term power and water purchase agreement.
CMS Energy Corporation has annual sales of $15 billion and assets of $16 billion throughout the U.S. and in selected foreign markets with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; LNG importation; oil and gas exploration and production; and energy marketing, services and trading.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com/
