Acwa Power locks in SAR 2.8 bn worth of financing for UAE desalination planet

ACWA Power signs financing agreements for its solar-powered Hassyan desal plant: Renewable energy giant Acwa Power secured SAR 2.77 bn (USD 740 mn) from local and international lenders to fund the development and construction of its solar-powered Hassyan water desalination project in Dubai, according to a disclosure to Tadawul.

What we know: The agreements — which have a financing period of 32.5 years — come almost six months after Dubai Electricity and Water Authority (Dewa) tapped Acwa Power to construct and operate the AED 3.4 bn (USD 914 mn) solar-powered desalination project in Hassyan. ACWA Power has a 20.4% stake in the project, which is planned to produce 681.4k cbm of water per day.

The project company Hassyan Water Company signed the agreements with international lenders, UK’s Standard Chartered Bank, Korea Development Bank, Japan’s MUFG Bank and Sumitomo Mitsui Trust Bank, and China’s Industrial and Commercial Bank Of China and China Construction Bank. Other lenders include local export credit agency Saudi EXIM, Emirates NBD, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, Arab Petroleum Investments Corporation, and Boubyan Bank.

REFRESHER- Dewa is buying water from the Hassyan plant: Dewa signed a 30-year water purchase agreement with ACWA Power to buy water from phase 1 of the desalination plant. Dewa will purchase the desalinated water at a price of around USD 0.365 per cbm — the lowest bid the UAE company received.