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Shuqaiq Independent Water & Power Project

Synergy Consulting was appointed as Financial Advisor by ACWA Power Projects to support their bid for the Shuqaiq-II Integrated Water and Power Project (IWPP).  The Shuqaiq-II IWPP Project (the "Project") is the second of multiple IWPPs under development and represents a major development in Saudi Arabia's water and power sector to help satisfy the increasing national demand for power and water. The Project followed the template of Shuaibah IWPP undertaken in 2005 by Water and Electricity Company ("WEC") - a 50:50 joint venture between the Saline Water Conversion Corporation ("SWCC") and Saudi Electricity Company ("SEC"). The Project involved the BOO (Build, Own and Operate) sponsorship of the design, construction, commissioning, testing, ownership, operation and maintenance of a new 850 MW AHC fired power and approximately 212,000 m3/day (47 MIGD) desalination plant and its associated facilities (the "Plant"). The financing was based on a 80:20 Senior debt to equity project financing and on a combined Senior and Junior debt to equity ratio of 85:15. The project funding was completed with a mix of Senior Debt, Junior Debt and Equity Bridged Facility. The Sponsors for the Project are ACWA, GIC and Mitsubishi and the EPC Contractor is MHI.

The Request for Proposals (RFP) to bid was issued in 2005.  Synergy Consulting was responsible for the development of the financing term sheet and the bid financial model for both equity investors and the lenders. Synergy also coordinated with the lead developer at ACWA, the technical advisor (ILF, Germany), the legal advisor (Trowers and Hamlin) and participated in EPC negotiations and the mark-up of the Power and Water Purchase Agreement (PWPA).  The Core Mandated Lead Arrangers (CMLAs) were BLB, Samba Financial Group, Riyad Bank, GIB and Woori Bank and Synergy led the negotiations of the Common Term Sheet that was submitted as part of the bid. The bid financial model was audited by KPMG. ACWA submitted the lowest tariff in response to the RFP. Synergy was further involved in clarification and negotiation meetings with WEC that led to the process of the ACWA Consortium being selected the First Ranked Bidder. Synergy assisted in the entire debt syndication process in terms of the development of the Information Memorandum, finalization of the financing documentation, negotiating the syndication strategy and sign-off on the financial model for the lenders by KPMG. Synergy also assisted with satisfaction of Conditions Precedent to First Drawdown under the Loan Facilities.

The project construction started successfully in May 2007.
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