ESB to build plant in Spain

THE ESB, prevented by the Government from making a major incursion into the Polish energy market, yesterday signed a €690 million deal to build and operate the first foreign-owned power plant in Spain.

ESB has lined up a formidable array of international bankers to finance the construction of its largest international investment project to date a 755MW combined cycle gas-fired power plant outside of Amorebieta near Bilbao in the Basque region of northern Spain.

The Royal Bank of Scotland was lead arranger of the financial facilities having won the contract from the ESB though a tendering process. Nine international banks are underwriting non-recourse facilities totalling 690m, including the long-term project facility of 440m. These include: Royal Bank of Scotland, Allied Irish Bank, Bank of Ireland, BBVA, Banesto, Bayerische Landesbank, KBC, Fortis and Halifax Bank of Scotland.