14 March, 2019

Kuwait names financial advisor for Dabdaba solar power project

KNPC to borrow 60-70 percent of the project cost

14 March 2019
State-owned Kuwait National Petroleum Company (KNPC) has appointed the local KAMCO Investment Company as financial advisor for the Dabdaba solar power project which is expected to be awarded in summer, the Kuwaiti Arabic language newspaper Alseyassah reported on Thursday.

KAMCO, a key Kuwaiti asset management firm, will manage loans from banks and other financial institutions to partly fund the project, which is expected to cost around 500 million Kuwaiti dinars ($1.65 billion), the daily said, quoting KNPC sources.

KNPC named a financial advisor after it decided to partly fund the OPEC member's first major solar power project through borrowings, the paper said.


"KNPC is considering funding the project through its own resources and bank loans...there are proposals that borrowing will be 60 or 70% of the costs."

The paper quoted the sources as saying KNPC has received bids for Dabdaba and that the project would be awarded in June or July.

Officials said in late 2018 that 28 firms had been pre-qualified to bid for the project that will produce nearly 15 percent of Kuwait's electricity needs.

The project, located 160 km west of the capital Kuwait City, will produce 1.5 GW of electricity and is part of government plans to tap renewable energy sources to expand their share of the energy mix to 15 percent by 2030.

(Writing by Nadim Kawach; Editing by Anoop Menon)


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