Acwa Power and Harbin Electric have plans to achieve financial closure for the 1,200 MW Hassyan clean coal power project in Dubai by the second half of 2017.
According to sources, the companies are in negotiations with Chinese-state owned credit agency Export-Import Bank of China, Industrial and Commercial Bank of China, Bank of China, Standard Chartered, Abu Dhabi’s First Gulf Bank (FGB) and Saudi lender Samba Financial Group. Project financing is expected to be over US$2 billion.
Acwa and Harbin had agreed with Dubai Electricity & Water Authority (DEWA) to double the size of the project from 1200 MW to 2400 MW, combining the first and the second 1200 MW phases. DEWA also plans to carry out an additional phase for a total capacity of 3600 MW.
The plant, located in Saih Shuaib on the border between Dubai and Abu Dhabi, also includes integrated transshipment coal and dry bulk handling facilities.
In October 2015 DEWA and China's Silk Road Fund signed a Memorandum of Understanding (MoU) in Riyadh to jointly develop and invest in power projects in the United Arab Emirates, Egypt, and the region. The MoU included the Hassyan clean coal power plant project.
According to the terms of the MoU, ACWA Power would agree to pursue the successful implementation and development of projects, and Silk Road Fund will agree to make equity investments in the projects, and provide the necessary debt financing.