The fifth phase of the Mohammed bin Rashid Al Maktoum solar park is estimated to cost $564m

ACWA Power

ACWA Power secures financing for 900MW solar plant. (Credit: Pixabay/Grégory ROOSE.)

ACWA Power, a Saudi Arabian energy and water utility, has secured financing for the fifth phase of the 900MW Mohammed bin Rashid Al Maktoum solar park to be located in Dubai.

Expected to be commissioned by the second quarter of 2021, the fifth phase of the park is estimated to cost $564m.

Financing for the project was provided by a group which included Abu Dhabi Islamic Bank, Arab Petroleum Investment Corporation, Industrial and Commercial Bank of China, Emirates NBD Bank, Natixis, SAMBA Financial Group, Standard Chartered Bank and Warba Bank.

Commercial Bank International has provided a project recourse mezzanine tranche and Commercial Bank of Dubai, Emirates NBD Bank and Mashreq bank have provided equity bridge facilities.

Shuaa Energy 3 PSC is the special purpose vehicle (SPV) incorporated for the solar park, which is owned by Dubai Electricity & Water Authority (DEWA) with 60% stake and the remaining stake is split between ACWA Power and Gulf Investment Corporation (GIC).

Shanghai Electric is the EPC contractor for the fifth phase project

The solar project, which will be powered by bi-facial panels with tracking technology, is part of the Dubai Clean Energy Strategy 2050.

The engineering, procurement and construction (EPC) contract for the solar plant’s construction has been offered to Shanghai Electric in July this year.

To be built with a total investment of AED 50bn ($13.6bn), the Mohammed bin Rashid solar park is estimated to generate 5GW of electricity by 2030.

ACWA Power president and CEO Paddy Padmanathan said: “Securing this amount of long tenor project financing for Shuaa Energy 3 PSC even as COVID 19 pandemic continues to cause social and economic disruption to the entire world illustrates the combined capabilities and trusted partnership between ACWA Power and DEWA.

“We are delighted to have achieved this significant milestone, which reflects confidence of the financial community in this partnership, and the role and iconic status of the fifth phase of Mohammed bin Rashid Al Maktoum Solar Park in delivering Dubai’s Clean Energy Strategy 2050.”