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Saudi Arabian power engineering firm ACWA Power has agreed financing for a 200MW project in Dubai thought to have the lowest cost per unit of electricity ever.

The company and Spanish engineering firm, TSK, was confirmed as the winner of the tender process in January with a bid of US$0.0585/kWh. The original bidding had been for 100MW project but both parties agreed to double the size.

At an industry conference this weekend, ACWA’s CEO Paddy Padmanathan said the company had a 27-year loan agreement for US$344 million. The finance is being provided by Abu Dhabi-based First Gulf Bank and the National Commercial Bank and Samba Financial Group, both of Saudi Arabia. The interest rate is 4%, according to reports.

The loans will be signed off before the end of the month Padmanathan added. He also confirmed that the total cost of the project was around US$400 million.

The project is the second phase of the emirate's Mohammed bin Rashid Al Maktoum Solar Park that will eventually total 1GW in capacity.