Saudi Arabia’s ACWA Power said today it has signed all financing agreements for the 900-MW fifth phase of the Mohammed bin Rashid Al Maktoum solar project in Dubai.
The capital cost of the photovoltaic (PV) project is around USD 564 million (EUR 477m). It will be built by Shuaa Energy 3 PSC, a special purpose vehicle (SPV) in which the ACWA-Gulf Investment Corporation (GIC) consortium owns 40%, while the Dubai Electricity & Water Authority (DEWA) holds 60%.
Financing for the project has been agreed with Emirates NBD Bank, Abu Dhabi Islamic Bank, Natixis, Arab Petroleum Investment Corporation, Industrial and Commercial Bank of China, SAMBA Financial Group, Warba Bank and Standard Chartered Bank. In addition, Commercial Bank International provided a project recourse mezzanine tranche, while Commercial Bank of Dubai, Emirates NBD Bank, Mashreq Bank and DEWA extended equity bridge loans.
“Project financing of this magnitude having been successfully raised from nine project finance lenders in the midst of a global pandemic, is the ultimate testament to DEWA’s credibility as a counterparty and the success of their IPP programme, as well as ACWA Power’s focus and proven ability to deliver power and desalinated water reliably and responsibly at low cost,” said Rajit Nanda, ACWA’s Chief Investment Officer.
Once built, the solar park will sell its output at just USD 16.95 per MWh under a 25-year power purchase agreement (PPA).
In July, Shanghai Electric Group Co (SHA:601727) was announced as the engineering, procurement and construction (EPC) contractor for the project.