Under terms of a 21-year-long power purchase agreement, EWEC will be the sole procurer on a take-or-pay basis for the generated electricity and includes risk mitigation provisions arising out of the latest regional developments.
Krishna Guha of Maybank Securities has raised his target price for Sembcorp Industries from $5.60 to $6 after news that the utilities company has been chosen by the Emirates Water and Electricity Company as one of the minority partners of a 2.6GW independent power producer project.
Leading regional utilities firm TAQA will own a 60% stake in the development and a 40% stake in the operations and maintenance (O&M) company. Sembcorp, meanwhile, will have a 20% stake in the development and a 30% stake in O&M company.
