Dubai: DEWA, Shanghai Electric sign deal for 700MW CSP project
Shanghai Electric Generation Group (SEGC) and Dubai Electricity and Water Authority (DEWA) signed the engineering, procurement, and construction (EPC) agreement for the 700MW CSP project in Dubai.
The project is the fourth phase of the Mohamed bin Rashid Solar Park, the largest thermo-solar power plant in the world. The agreement was signed in Shanghai in presence of representatives from the Chinese government, the embassies of the UAE, and the Kingdom of Saudi Arabia as well as senior officials from DEWA, ACWA Power, the Silk Road Fund, Industrial and Commercial Bank of China (ICBC), Bank of China, Agricultural Bank of China, and China Minsheng Bank.
The project is in the process of concluding the financing package. ICBC is acting as the mandated lead arranger and targeting to approve $1.5bn of senior loan. 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. ICBC, Bank of China and Agricultural Bank of China will play an important role in the financing of the project, providing almost 80% of senior debt.
The EPC agreement pushes forward the development of the project, which represents an AED14.2bn investment. 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 260m.
DEWA MD and CEO of DEWA, HE Saeed Mohammed Al Tayer, said: “I am pleased to be here in Shanghai to attend the signing of the EPC agreement for the completion of the fourth phase of the Mohammed Bin Rashid Al Maktoum Solar Energy Complex. This agreement builds on the strong ties between our two countries, which were formed by our common values and the commercial and economic interests that unite us.”
ACWA Power president and CEO, Paddy Padmanathan, added: “Thanks to the Dubai Electricity and Water Authority, this project proves the success and effectiveness of implementing projects based on a public-private partnership model. We are confident that signing the EPC agreement with Shanghai Electric will secure the delivery of required work at the highest standards.”
Chairman of SEGC, Zheng Jianhua, said: “This project presents an opportunity for China, UAE, and KSA to cooperate, promote, and benefit in energy and infrastructure development based on each parties’ advantage in equipment manufacturing, engineering, construction and infrastructure, financing, project development and project management.”