ACWA Power a leading developer, owner, and operator of power generation and water desalination plants, leading a consortium with AlGihaz Holding Company, a major Saudi contractor and investor, acting as a consortium announced the successful financial closure of the SAR 1.2 billion Sakaka PV IPP, the first ever utility scale renewable energy project to be developed in the Kingdom of Saudi Arabia under the landmark National Renewable Energy Program executed by REPDO (Renewable
A new company “Sakaka Solar Energy Company (SSEC)” has been formed with ACWA Power holding 70% and AlGihaz 30% through its subsidiary AlGihaz Renewable Energy Company to own the Sakaka PV Plant. SSEC has concluded a 25 years Power Purchase Agreement with Saudi Power Procurement Company (SPPC) acting as offtaker.
The transaction is financed through limited recourse ring fenced project financing with the entire debt fully underwritten by Natixis as Initial Mandated Lead Arranger and Bookrunner. In addition, Arab National Bank provided an equity bridge loan for the transaction.
The commercial operation date of the plant is scheduled to be towards the end of calendar year 2019.
Upon completion, the 300 MW Sakaka PV IPP will supply more than 75,000 households with green power while offsetting over 430,000 tonnes of carbon dioxide per year. The project will also create new employment opportunities in fields including construction, operations and maintenance as well as enhancing the local capabilities in terms of local content.
The engineering, procurement and construction (EPC) contract for the project was awarded to a consortium of Mahindra Susten and Chint. The operations and maintenance agreement was signed with Diaa Sakaka Operation and Maintenance Company, an affiliate of First National Operations & Maintenance Co. Ltd. (NOMAC).
It may be noted that back in January 2018, REPDO awarded the project to ACWA Power Consortium at a world record tariff of US Cents 2.3417/kWh (8.781 halalas/kWh).
The plant is located in Al Jouf at a site spanning over six square kilometers
(Conversion Rate -> 1 $ = 3.75 SAR)
