Clifford Chance advises on SAR 1.84 billion Saudi Tabreed District Cooling Project

International law firm Clifford Chance has advised the sponsors, Saudi Tabreed, on a SAR 1.84 billion BOO / BOT district cooling project in Saudi Arabia.

The project is being financed by Banque Saudi Fransi and is the first of its kind in Saudi Arabia to be financed on a limited recourse basis. Following a competitive bid process, Saudi Aramco selected Saudi Tabreed to develop the project under which Saudi Tabreed will build, own and operate a 27,000 RT District Cooling System to provide cooling services to Saudi Aramco’s office complex in the Dhahran area.

Clifford Chance partner Mohamed Hamra-Krouha explains, “This project represents the first application of a fixed and variable component payment structure to a district cooling project, and is the first BOO or BOT based central cooling project to be awarded in the Middle East. Clifford Chance and Al-Jadaan & Partners Law Firm are pleased to have advised on this innovative project, which will be a model for future projects in Saudi Arabia and the wider Middle East region”.

Project finance in the Middle East
Saudi Tabreed was founded in 2005 and is majority owned by the Arabian Company for Water and Power Development (ACWA Holdings), which specializes in development of large infrastructure projects, particularly power and water projects. The other key shareholder of Saudi Tabreed is National Central Cooling Company UAE, “Tabreed”, which is the pioneer in development and operations of number of district cooling systems in MENA region.

The Clifford Chance and Al-Jadaan team was led by partners Richard Parris and Mohamed Hamra-Krouha. They were supported by Clifford Chance associates Ciaran Bohnacker, Anton Trixl, Hussain Shalchi and Nick Kinnersley. The Al-Jadaan team comprised partners Mohammed Al-Jadaan and Abdulaziz Abduljaber and associate Peter Randall.

The project is being financed by Banque Saudi Fransi and is the first of its kind in Saudi Arabia to be financed on a limited recourse basis. Following a competitive bid process, Saudi Aramco selected Saudi Tabreed to develop the project under which Saudi Tabreed will build, own and operate a 27,000 RT District Cooling System to provide cooling services to Saudi Aramco’s office complex in the Dhahran area.

Clifford Chance partner Mohamed Hamra-Krouha explains, “This project represents the first application of a fixed and variable component payment structure to a district cooling project, and is the first BOO or BOT based central cooling project to be awarded in the Middle East. Clifford Chance and Al-Jadaan & Partners Law Firm are pleased to have advised on this innovative project, which will be a model for future projects in Saudi Arabia and the wider Middle East region”.

Saudi Tabreed was founded in 2005 and is majority owned by the Arabian Company for Water and Power Development (ACWA Holdings), which specializes in development of large infrastructure projects, particularly power and water projects. The other key shareholder of Saudi Tabreed is National Central Cooling Company UAE, “Tabreed”, which is the pioneer in development and operations of number of district cooling systems in MENA region.

The Clifford Chance and Al-Jadaan team was led by partners Richard Parris and Mohamed Hamra-Krouha. They were supported by Clifford Chance

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