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Chinese bag Dubai power plant deal

|By TAP Staff| Dubai Water and Electricity Authority has chosen a consortium including China’s Harbin Electric and Saudi Arabia’s ACWA Power as the preferred bidder to build and operate a 1,200 megawatt clean coal power plant.

The plant is the first phase of the $1.8 billion Hassyan clean coal project under planning by Dubai Electricity and Water Authority (DEWA). One unit of 600 MW is to be operational by March 2020 and another unit of the same size by March 2021.

DEWA will be the major stakeholder with a 51 percent share in the company established to build and operate the Hassyan plant.

But the bulk of the cost will be shouldered by the consortium. It is talking to Chinese-state owned credit agency Export-Import Bank of China and lenders including Industrial and Commercial Bank of China, Bank of China, Standard Chartered and Abu Dhabi’s First Gulf Bank about a $1.4 billion loan for the project, Paddy Padmanathan, chief executive of ACWA Power, told reporters on Tuesday on the sidelines of an event to announce the preferred bidder.

DEWA will finance around a further $200 million of the project, with the consortium raising the final chunk from equity, officials said.

The consortium bid to provide electricity at a levelised cost of 4.501 U.S. cents per kilowatt hour based on May 2015 coal prices, DEWA said.

Harbin Electric and Alstom of France will build the plant while those companies as well as ACWA and U.S.-based NRG Energy will operate it, DEWA said on Tuesday. DEWA said it plans to launch two additional projects to bring the eventual total capacity of Hassyan to 3,600 MW.