DUBAI Dec 11 Dubai Electricity and Water
Authority has closed the financing package that will
back the construction of a 2,400 megawatt coal-fired power plant
in the emirate, according to a statement from one of the
developers on Sunday.
The Hassyan plant will be developed through a joint venture,
with the Dubai utility firm holding a 51 percent stake and the
rest split between China's Harbin Electric and Saudi
Arabia's ACWA Power IPO-ACWA.SE.
The financing package is divided between a senior secured
loan and secured mezzanine financing, ACWA said. It did not
specify exactly how much of the project's $3.4 billion cost
would be covered by the package but previously, officials had
indicated around 80 percent would be provided by commercial bank
In mezzanine finance, holders are only able to claim against
the company if it defaults, once creditors with senior debt have
The cash is being provided by lenders including Industrial
and Commercial Bank of China, Bank of China, First Gulf Bank and
Standard Chartered, ACWA added.
The coal plant is part of the emirate's strategy to broaden
its energy sources: by 2030, it is targeting around 7 percent of
its electricity production from coal, as well as 25 percent from
solar, 7 percent from nuclear power and 61 percent from gas.
Phase one of the coal plant is to be operational in March
2020, with all four 600 MW stages that make up the scheme to be
completed by March 2023, according to ACWA's statement.
(Reporting by David French; Editing by Andrew Torchia)