Dubai Electricity and Water Authority (Dewa) has chosen the group who will build and operate the 1,200 megawatt Hassyan clean coal power plant in Dubai.
The consortium includes a Chinese company and a company based in Saudi Arabia. The Chinese company will build the plant in cooperation with French company while the Saudi Arabia based company and an American company will work with the former two to operate it.
The first phase of the project involves to construction of the plant. This phase will consist of two units, the first will be the 600 MW which is planned to be operational by March 2020 and the second one with same capacity by March 2021.
It is said that the consortium bid is to supply electricity at a standard cost of 4.501 US cents KW per hour based on May 2015 coal prices.
The phase one will requires a total of $1.8 billion which is assembled as 78% debt and 22% equity. 51% of the equity part will come from DEWA which is equal to around $54.4 million or AED200 million and the remaining 49% is shouldered by the developers consortium.
On the other hand, a group of regional, international banks and export credit agencies will cover the 78%.
The power purchase agreement (PPA) is expected to be signed by February 2016.
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