Qatar General Electricity and Water Corp. (Kahramaa) has revealed that Japan Bank for International Cooperation (JBIC) and Mizuho Corporate Bank have agreed to finance the construction of the Siraj-1 solar project, which will be built on a plot of land spanning 10 square kilometers in Al Kharsaah, west of Doha.
Kahramaa said the two Japanese financial institution have provided senior loans, adding that the plant will be built at a cost of QAR 1.7 billion ($466.9 million).
The project was secured in a January tender by consortium led by French oil giant Total and Japanese conglomerate Marubeni. The two companies initially submitted a bid of QAR 0.0636/kWh, but the final price reached QAR 0.0571/kWh, based on financial market indices. The bid improved upon the previous world record of €0.0147/kWh ($0.016), submitted by French developer Akuo Energy for 150 MW of solar capacity in Portugal’s first PV auction.
The Siraj-1 project will be completed in the first quarter of 2022. Its first 350 MW section should be operational in the second quarter of 2021. The facility will be 60%-owned by Siraj Energy, a joint venture between Kahramaa and Qatar Petroleum. The consortium will hold the remaining 40%. The solar park will provide the Qatari utility with electricity under a 25-year power purchase agreement.