Saudi utility ACWA Power has completed the signing of all financing agreements for a 900MW photovoltaic project in Dubai, in the United Arab Emirates.

The project, called Shuaa Energy 3 PSC, is the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

Shuaa Energy 3 PSC is the special purpose vehicle incorporated for the project, with 60% ownership in the hands of the Dubai Electricity & Water Authority (DEWA) and the remaining 40% split between ACWA Power and Gulf Investment Corporation (GIC).

The 900MW solar plant will use bi-facial panels with tracking technology, at a capital cost of $564m.

The plant is contracted to produce energy at one of the lowest levelised cost of electricity (LCoE) rates, worldwide, at $17 per megawatt-hour.

The project will use limited recourse project financing with the senior debt provided by a number of international, regional and local banks along with a project recourse mezzanine tranche committed by a regional bank, with both conventional and Islamic tranches.

In addition, the financing structure features equity bridge loans provided by local banks and also by DEWA.

Financiers include 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.

The project recourse mezzanine tranche is provided by Commercial Bank International and equity bridge facilities are provided by Commercial Bank of Dubai, Emirates NBD Bank and Mashreq bank.

ACWA Power president and chief executive Paddy Padmanathan said: “Securing this amount of long tenor project financing for Shuaa Energy 3 PSC even as the 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.”

The EPC agreement for the construction of the project was signed with Shanghai Electric in July 2020.