JBIC and Mizuho Bank to provide loan for solar facility in Qatar

13 August 2020 (Last Updated August 18th, 2020 03:29)

Two Japanese banks have reportedly signed an agreement to provide a syndicated loan of $330m for the construction of an 800MW solar power facility in Qatar.

JBIC and Mizuho Bank to provide loan for solar facility in Qatar
WAAREE’s solar order will go towards plants due to be commissioned next year. Credit: Samyag Shah on Unsplash.

Two Japanese banks have reportedly signed an agreement to provide a syndicated loan of $330m for the construction of an 800MW solar power facility in Qatar.

Mizuho Bank and the Japan Bank for International Cooperation (JBIC) have agreed to fund Qatar’s first large-scale solar power plant.

The project will support the country’s efforts to increase its total renewable generation to 20% of national power production by 2030.

Constructors will build the solar facility in the western Qatar desert village of Al Kharsaah and equip it with double-sided photovoltaic panels. According to a JBIC statement, it will come online by April next year.

JBIC told media sources: “This loan is expected to contribute to further strengthening of the multilayered economic ties between Japan and Qatar.”

Japanese firm Marubeni and Total, along with a Qatari energy firm, will create a special purpose company to own and manage the solar facility.

Once operational, the facility will supply clean energy to Qatar General Electricity and Water Corporation for 25 years.

Qatar is a major exporter of liquefied natural gas (LNG) to Japan, and currently depends on fossil fuels and coal for power generation.

In January 2015, Mizuho Bank arranged $129m as project financing for the development of the 52.5MW Shams Ma’an solar photovoltaic project in Jordan.

MHBK contributed $39m and the rest was provided by the JBIC and Standard Chartered Bank.