The Abu Dhabi Water & Electricity Authority (ADWEA) signed on Wednesday a deal with a consortium of Japan's Marubeni Corp and China's JinkoSolar Holding to build and operate a $3.2 billion solar power plant in Sweihan, set to be the world’s largest, United Arab Emirates state news agency WAM reported.
Construction on the project will begin immediately and is expected to be complete in Q2 2019, Reuters reported on Wednesday.
ADWEA has closed an $872 million (AED 3.2 billion) financing package for the solar photovoltaic (PV) plant, which will operate with a capacity of 1,177 megawatts (MW).
The government-owned utility secured $650 million in debt, while the remaining $222 million was raised in equity, Director General Saif Saleh Al-Sayari told the agency.
The 25-year loan is structured in a way that will allow refinancing after five years, he added.
The equity portion will be contributed by ADWEA and the project developers Marubeni and JinkoSolar.
Bank of Tokyo Mitsubishi was the lead arranger of the loan along with Japan’s Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Norinchukin Bank; France’s BNP Paribas, Credit Agricole, and Natixis; and First Abu Dhabi Bank.
Sweihan PV Power Co. has been set up as a special purpose vehicle to operate the project.
ADWEA holds a 60 percent stake in the company while Marubeni and JinkoSolar each hold 20 percent.
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