Qatar solar project reaches financial close

Qatar solar project reaches financial close

26 Jul 2020

Japan’s Mizuho Bank and export credit agency Japan Bank for International Cooperation (Jbic) have agreed to provide senior loans for the solar project, which will require a total investment of $467m.

 

The special purpose vehicle (SPV) established to develop the planned 800MW Siraj Solar project in Qatar has reached financial close for the project.

Energy & Utilities reported in January that a consortium led by France’s Total and Japan’s Marubeni has been awarded the contract to develop the 800MW PV independent power producer (IPP) project.

Japan’s Mizuho Bank and export credit agency Japan Bank for International Cooperation (Jbic) have agreed to provide senior loans for the solar project, which will require a total investment of $467m.

Legal firm Bracewell was the lead international counsel on this deal, advising the Marubeni/Total consortium.

The Marubeni/Total consortium will own a 40 per cent stake in the solar asset, with the government-owned Siraj Solar holding the remaining 60 per cent. Siraj Solar is a joint venture (JV) of utility provider Qatar Electricity & Water Company (QEWC) and state oil company Qatar Petroleum (QP).

The final agreed tariff for the solar project of $cents1.6 per kilowatt hour (kWh) broke the world record for the lowest PV solar tariff earlier this year until a lowest levelised cost of electricity (LCOE) tariff of $cents1.35/kWh was submitted for the 2Gw Al-Dhafra PV IPP in Abu Dhabi in April.

The PV project will be developed in the Al-Kharsaah area of Qatar, about 80km west of Doha. The first 350MW is due to be operational by the first quarter of 2021, with the full 800MW scheduled to be connected to the grid by the first quarter of 2022.

The UK’s EY provided the client, Siraj Solar, with financial advisory services during the tendering process with UK legal firm DLA Piper and Finland’s Poyry providing legal and technical advisory services respectively.



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