Saudi Arabian energy company ACWA Power has signed financing agreements for the 900MW Shuaa Energy 3 PSC project in Dubai.

The project is the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park. The project will feature bi-facial panels with tracking technology.

Shuaa Energy 3 PSC is a special purpose vehicle (SPV) created for this project.

Dubai Electricity & Water Authority (DEWA) will own 60% stake in Shuaa Energy 3 PSC , a company formed around this project. The remaining 40% stake will be held by ACWA Power and Gulf Investment Corporation.

ACWA Power chief investment officer Rajit Nanda said: “Project financing of this magnitude having been successfully raised from nine project finance lenders in the midst of a global pandemic, is the ultimate testament to DEWA’s credibility as a counterparty and the success of their IPP programme, as well as ACWA Power’s focus and proven ability to deliver power and desalinated water reliably and responsibly at low cost.”

The project cost $564m, with funding secured from institutions including 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.

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Additionally, Commercial Bank International agreed to offer a project recourse mezzanine tranche and equity bridge facilities were provided by Commercial Bank of Dubai, Emirates NBD Bank and Mashreq Bank.

The financing structure also featured a set of equity bridge loans provided by local banks and also by DEWA.

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

In July this year, Shanghai Electric signed on as an engineering, procurement and construction provider for the project.

Renewable generation inverter supplier Sungrow has now partnered with Shanghai Electric to supply its 1.5MV 6.25MW turnkey solution to the development.

Last November, ACWA Power connected Sakaka Solar PV Plant in the Kingdom of Saudi Arabia to the national electricity grid.

Built with an investment of $319m (SAR1.2bn), the Sakaka power plant is part of the King Salman Renewable Energy Initiative.