London, January 31, 2007 - Shearman & Sterling represented Marafiq, the utility company for Jubail and Yanbu in Saudi Arabia, on the development of the landmark Jubail Independent Water and Power Project.

A Shareholders' Agreement and Power and Water Purchase Agreement were signed on January 16 by a consortium of Suez Energy, GIC and ACWA Power.

The US$3 billion Jubail IWPP is one of the largest facilities of its kind in the world, with an output of 2,745 MW and 800,000 cubic metres of water per day.  It will serve domestic and industrial consumers in Jubail and the wider region, and facilitate further development of the Jubail industrial city.

The Jubail IWPP project company will be owned 60% by the Suez Consortium, 30% by Marafiq and 5% each by the Public Investment Fund of Saudi Arabia and the Saudi Electricity Company.  Financial close is anticipated by April 20.  Citigroup is acting as financial advisor to Marafiq and Lahmeyer/ILF are advising on the technical aspects.

Commenting on the deal, Shearman & Sterling partner Nigel Thompson said:  "We are all delighted that Marafiq has achieved this key milestone in a landmark project.  Shearman & Sterling has long been active in the Saudi market and the opportunity to work with Marafiq and its shareholders has been a valuable one."

Attorneys included Nigel Thompson (London-Project Development & Finance), Nicholas Buckworth (London-Project Development & Finance) and associates Dan McGrath (London-Project Development & Finance) and Cem Celiker (London-Project Development & Finance).