London, 24 Jul 2003 — Global law firm Shearman & Sterling, LLP, working closely with the in-house legal department of CMS Generation Co., has advised the project company on the US$169.5 million international financing of the gas fired steam and electricity co-generation facility in Jubail, Saudi Arabia, which was successfully signed on Monday 14th July 2003.

The project company is Jubail Energy Company, and the sponsors are CMS Generation Co, Hamed A. Al Zamil and Brothers Co., and Khaled M El-Seif. The lead arrangers are Crédit Agricole Indosuez and Banque Saudi Fransi.

The Jubail energy project is the first fully limited recourse financing of an IPP to take place in the Kingdom of Saudi Arabia, and is at the forefront of the developing market for private power in the Kingdom. The plant will have a steam generation capacity of 510 t/h and an electricity generation capacity of 250 MW. Shearman & Sterling is a market leader in advising on project finance deals in the Middle East and has a reputation for advising on the first power and water transactions to take place in a number of opening markets within the region including Abu Dhabi, Qatar, Oman, Saudi Arabia and Egypt. The Jubail deal has enhanced that reputation further.

Shearman & Sterling, LLP advised the lenders on the Taweelah A2 financing (and current refinancing) and the Shuweihat S1 financing in Abu Dhabi. The firm advised the project company on the Salalah and Barkha Projects in Oman and on the Ras Laffan Project in Qatar. The Firm is currently very active in the region including advising the sponsors of the Dolphin Project in Abu Dhabi, the project company on Egyptian LNG, Medgaz in Algeria and a bidder in relation to the current Saudi Aramco co-generation project.

The Shearman & Sterling, LLP London team was led by Partner Nick Buckworth and senior associates Shalini Sequeira and Stephen Jurgenson together with Lucy Pickering, Nicole Clouthier and Laleh Hejazi. Mark Sandy was the lead in-house lawyer for CMS.