BUYER'S CREDIT PROVIDED FOR POWER PLANT IN NETHERLANDS ANTILLES
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed Nov 29, 2000, a loan agreement totaling US$124.92 million with the Utilities Company N.V. (CUC), established in 1997 by the joint investment of Mitsubishi Corp., Nations Energy Co., and the Government of , Netherlands Antilles, to construct a power plant This loan is cofinanced with The Daiichi-Kangyo Bank, Ltd., The Fuji Bank, Ltd., Standard Chartered Bank, Tokyo Branch, BNP Paribas, Tokyo Branch, Societe Generale, Tokyo Branch, ABN AMRO Bank N.V., Tokyo Branch, and Credit Agricole Indosuez, Tokyo Branch JBIC assumes a 60% share of the total, or US$74.95 million. The proceeds of the loan will be used to purchase equipment and services from Japan that will be used for an electric power project executed by CUC. The Japanese exporter and manufacturer are Mitsubishi Corp. and Mitsubishi Heavy Industries, Ltd., respectively.
2. The Project will construct and operate a 90MW-power plant in , Netherlands Antilles, located off the northern coast of Venezuela, under the BOO (Build, Own and Operate) scheme. It will sell the power to ISLA, which is an oil refining company located on the island and a subsidiary of de Venezuela S.A., PDVSA, through the year 2019..The ISLA Refinery is currently being upgraded with the aim of improving the quality of its oil products and enhancing environment preservation measures by desulfurizing the emission and waste water discharged from the refinery. The Project is designed to meet the expected increase in power demand. Furthermore, the surplus power from the plant will be used by residents on the island.
3. The Project was made possible by the concerted efforts of JBIC and the commercial banks, who jointly are assuming the risks in IPP that designates ISLA, the subsidiary of PDVSA, as the buying entity with PDVSA providing a guarantee for the payment of power. (IPP is a project where an independent power business constructs and operates power generation equipment on its own, and sells the power to an electric power company). The project is thus expected to promote the export of power generating equipment by the Japanese firms, help meet the power demand of the island, contribute to the local residents' well being, and contribute to environmental improvement.