US Ex-Im Bank has approved a US$192mn long-term loan guarantee to support construction of the 825MW Skikda Power Project in the Algerian coastal city of Skikda.
SNC Lavalin Constructors – the Redmond, Washington-based subsidiary of SNC Lavalin Constructors International Inc of Canada – is exporting General Electric gas-fired turbines and providing engineering services for the project. The borrower is Shariket Kahraba Skikda (SKS), a special-purpose corporation formed, to develop the project, by two Algerian state-owned energy companies, Sonatrach and Sonelgaz, which are providing guarantees to Ex-Im. Societe Generale of New York, the lender, received a 12-year guarantee from Ex-Im.
“This project is a good illustration of how Ex-Im Bank supports jobs in the United States while supporting economic development in emerging markets,” Philip Merrill, Ex-Im Bank’s chairman, says. “Algeria is a growing and important market for Ex-Im Bank, and we look forward to doing more business there.”
Ex-Im has supported many Sonatrach financing requests during the last 30 years. Currently, the bank has more than US$840mn in exposure in Algeria.