Japan Bank for International Cooperation (JBIC) has signed a loan agreement with South Rabigh Renewable Energy Company (SRREC) of Saudi Arabia, in which Marubeni Corporation holds an equity stake. JBIC will provide project financing amounting to US$78 million for the Rabigh Solar PV Plant, which was put out to tender and awarded to Marubeni and Al-Jomaih Energy & Water Company.
The loan is co-financed with Mizuho Bank and Riyadh-based Al Rajhi Bank, with the total co-financing amounting to US$157 million. Al Rajhi Bank plans to provide the funds based on Islamic finance.
SRREC will build, own and operate the 300MW solar PV plant, which is located approximately 800 kilometres to the west of Saudi capital Riyadh.
The energy will be sold to Saudi Power Procurement Company over 25 years. This is the first loan by JBIC for an independent power producer (IPP) project as well as for a renewable energy project in Saudi Arabia.
In January 2019 Saudi Arabia unveiled its National Industrial Development and Logistic Programme, which is part of its Saudi Vision 2030. The kingdom aims to develop 40GW of solar power generation and 16GW of wind power generation capability by 2030.