Banks will provide finance for 86 per cent of the cost of developing the 200MW second phase of Dubai’s Mohammed bin Rashid al-Maktoum solar park, which will cost an estimated AED1.2bn ($327m) to develop.

Speaking at a press event to announce the selection of Saudi Arabia’s Acwa Power to develop the second phase of the facility on 15 January, Saeed Mohammed al-Tayer, managing director and CEO of Dubai Electricity & Water Authority (Dewa), said banks would finance the majority of the construction costs of the independent power project (IPP).

“Very little equity is required,” he said. “Banks will finance 86 per cent of the cost of the project.”

An Acwa Power representative said financing was expected to be completed within the next three months.

Dewa announced earlier on 15 January that it was doubling the capacity of the second-phase IPP from 100MW to 200MW.

The project is scheduled to be operational in 2017. The 200MW phase will be the largest photovoltaic (PV) solar plant in the region when completed, which will also mean Dubai will achieve its intended target of 1 per cent of its power generation coming from solar.