Oman/Sharqiyah Independent Water Project
－First Loan Insurance for Project Finance for Omani IWP－
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI: Chairman and CEO: Kazuhiko Bando) has decided to provide loan insurance to support Sharqiyah Independent Water Project in Oman. This is the first time that NEXI has provided insurance for a seawater desalination plant project.
The project will be undertaken through Al Asilah Desalination Company SAOC1 (hereinafter referred to as the “Project Company”), jointly founded by JGC Corporation (Japan), United Infrastructure Development Company LLC (Oman) and Doosan Heavy Industries & Construction Co., Ltd. (Korea). The project will build a seawater desalination plant in Sharqiyah, Oman which is expected to launch operations in 2021, and thereafter will sell approx. 80,000m³ desalinated water per day for over 20 years to the Oman Power and Water Procurement Company SAOC engaged in procuring and selling electric power and water in the country.
In this project, MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited and Shinsei Bank, Limited will provide a loan to the Project Company in the form of project finance of USD 114 million in total, and NEXI will offer insurance to support the loan.
Since demand for desalinated water in Oman is increasing as a result of growing population and economy, this project is expected to contribute to a stable supply of desalinated water.
As the Japanese government announced to strengthen its support for developing the water business overseas, NEXI’s support for JGC Corporation’s overseas activities through loan insurance is in line with the government’s policy.
As a financial institution implementing Japan’s policies, NEXI will continue to actively support Japanese companies to develop their business overseas.
| Lender | MUFG Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited Shinsei Bank, Limited |
| Insured Value | USD 114 million |
| Tenor | Approx. 20 years |
| Covered risks | Political Risk 100% and Commercial Risk 90% |
Contact: Infrastructure Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7674
1 The Project Company is owned by JGC Corporation (75%), United Infrastructure Development Company LLC (20%) and Doosan Heavy Industries& Construction Co., Ltd. (5%).
2 The loan agreement was entered into on 11th July 2018.