Dubai's DEWA gets finance for $3.4 bln Hassyan power plant

Saudi’s ACWA Power and Dubai Electricity and Water Authority (DEWA) has closed the financing package for the 2,400 megawatt (MW) Hassyan clean coal power project, DEWA said in a statement.

Total investment of the project is $3.4 billion through Hassyan Energy, which is a joint-venture between DEWA that holds 51 percent stake and a consortium comprising ACWA Power, Harbin Electric, and the Silk Road Fund, DEWA said.

In a separate statement ACWA Power said the banks and financial institutions involved included Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Silk Road Fund, First Gulf Bank, Union National Bank, Standard Chartered Bank, National Commercial Bank, Commercial Bank International and Emirates NBD.

The financing package is divided between a senior secured loan and secured mezzanine tranche, ACWA said. 

The project consists of four 600MW net power units. They will be operational in March 2020, March 2021, March 2022, and March 2023, respectively.

The project uses the Independent Power Producer (IPP) procurement model on a build, own, operate (BOO) basis and is supported by a 25-year Power Purchase Agreement (PPA) with DEWA, the statement added.

Last June, DEWA signed the PPA, shareholders agreement, and other project agreements with the consortium led by ACWA Power

The Hassyan clean coal power plant is expected to be the first-of-its-kind in the region and is fully-compliant with set international standards, adopting the use of ultra-supercritical technology.