Industrial and Commercial Bank of China (ICBC) has been mandated as lead arranger for a $1.5 billion senior loan to finance the construction of a Dubai-based thermo-solar power project, which is the largest thermo-solar power plant in the world.
ICBC, Bank of China and Agricultural Bank of China will play a key role in the financing of the project, providing almost 80% of senior debt.
Dubai Electricity and Water Authority (DEWA) and the Saudi Company ACWA Power, in collaboration with Shanghai Electric, will build the 700 MW CSP project in Dubai.
The project, which has an investment worth $3.87 billion, is in the fourth phase of the Mohamed bin Rashid Solar Park. The engineering, procurement and construction (EPC) agreement with Shanghai Electric Generation Group (SEGC) for the DEWA project in Dubai was signed on April 15 at a ceremony in China.
“The project is in the process of concluding the financing package. ICBC is acting as the mandated lead arranger and targeting to approve $1.5 billion of senior loan,” ACWA Power said in a statement.
“This project is a flagship project for ICBC in supporting the three major Chinese power equipment suppliers, namely Shanghai Electric, Dongfang Electric and Harbin Electric, to ‘go abroad’ and break through the sophisticated and established power market.”
The project, which comes with a record low tariff of just $7.3 cents per kilowatt hour (kW/h), will feature a combination of a tower and parabolic troughs, which will collect heat and store it in molten salt to supply electricity on demand during the day and through the night. The CSP tower to be built at the site will the world’s tallest CSP Tower at 260 meters.
The largest thermo-solar power plant in the world is set to save 2.4 million tons of CO2 and half a million tons of natural gas per year, eliminating the need to use foreign currency to import this gas by substituting it with clean and renewable energy.