About Barakah One Company

In October 2016, ENEC and KEPCO launched Barakah One Company as a commercial Joint Venture Company mandated to manage the commercial interests of the Barakah project, secure project finance from institutional and commercial lenders and receive funds for the electricity generated from Units 1 to 4 in Barakah. Barakah One Company manages the sale of electricity generated at the Barakah Nuclear Energy Plant and the funds received from the Abu Dhabi Department of Energy’s utilities companies as part of the Power Purchase Agreement signed in 2016.

Barakah One Company is accountable for ensuring that ENEC and KEPCO build the plant in accordance with the highest standards of quality, safety and sustainability, in accordance with all existing contracts including the Prime Contract. The Barakah Nuclear Energy Plant project is financed through a combination of debt and equity, and Barakah One Company also ensures the lenders continue to support the project.

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In October 2016, ENEC and KEPCO announced the financial close of the Barakah project. The support from credit agencies and commercial banks to the program is a reflection of the robust project management and quality of the program.

As announced, the overall project financing requirements are estimated at US$ 24.5 billion, whereas:

  • US$ 19 billion are provided as a direct loan from the Government of Abu Dhabi
  • US$ 2.5 billion are provided as a direct loan from KEXIM
  • US$ 250 million in loan agreements with five local and international commercial banks.
  • A total of US$ 4.7 billion in equity commitments for the establishment of the Barakah One Project Joint Venture Company in exchange for equity interest in the company, shared between ENEC and KEPCO.

This robust project finance framework enables Barakah One Company to manage the commercial interests of the Barakah project, contracting Nawah to operate and maintain the four units of the Barakah plant.

Also in October 2016, Barakah One Company and ADWEC, which has since become the Emirates Water and Electricity Company (EWEC), announced the Power Purchase Agreement (PPA), which agrees the price-per-kilowatt structure of the electricity produced by Barakah Units 1 to 4. The PPA is a significant commercial milestone for the Barakah project, agreeing the price at which the electricity produced at the Barakah plant will be sold to the grid.

With Barakah One Company managing the commercial interests of the Barakah Nuclear Energy Plant, ENEC and KEPCO have the tools to continue to deliver the program in a safe, efficient and commercially-viable manner.