Meed | Cranmore advises Masdar on $1.5bn Dubai solar project

Cranmore advises Masdar on $1.5bn Dubai solar project

13 March 2024

Abu Dhabi-based Cranmore Partners has provided financial advisory services to Abu Dhabi Future Energy Company (Masdar) in its successful bid to develop and operate the 1,800MW sixth phase of the Mohamed bin Rashid Solar Park in Dubai.

The company was the "sole and exclusive financial adviser on the bidding, award and successful financial close of Dewa VI independent power project (IPP), the 1,800MW phase VI of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE", the firm's managing partner, Yusuf Macun, said.

State utility Dubai Electricity & Water Authority (Dewa) and Masdar reached financial close for the project in February.

The project is expected to cost up to AED5.51bn ($1.5bn). The lending group to the project includes:

Abu Dhabi Commercial Bank (local)
Commercial Bank of Dubai (local)
First Abu Dhabi Bank (local)
HSBC (UK)
Standard Chartered Bank (UK)
Abu Dhabi Islamic Bank (local)
Warba Bank (local)

Dewa selected Masdar to develop and operate the project in August last year, two months after it received bids for the contract.

Masdar did not disclose the debt-to-equity ratio for the project's financing.

Once completed in 2026, the 1,800MW sixth phase of the solar park will increase its total production capacity to 4,660MW, according to Saeed Mohammed Al Tayer, Dewa managing director and CEO.

The state utility aims to have around 27% of the generation mix sourced from clean energy sources by 2030.

Masdar, teaming up with EPC contractor China Machinery, submitted a low bid of $cents1.62154 a kilowatt hour ($c/kWh) for the contract.

In January, the renewable engineering, procurement and construction (EPC) arm of the India-headquartered Larsen & Toubro (L&T) Power Transmission & Distribution business announced winning the project's turnkey EPC contract.

The solar photovoltaic (PV) farm will be built on a 20-square-kilometre plot, about 50 kilometres from Dubai.

L&T’s project scope includes installing two gas-insulated switchgear units, high-voltage underground cabling and medium-voltage distribution networks, in addition to the solar photovoltaic (PV) farm.

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Jennifer Aguinaldo