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00:00GOOD MORNING, GREAT TO HAVE YOU ON THE PROGRAM. LET US TAKE OFF THEN. IN TERMS OF SETTING A BENCHMARK FOR YOUR PROJECT, HOW WILL THE SOLAR PLANT DEVELOPERS BE ABLE TO SUSTAIN THE DECLINE IN PRICING THAT YOU'RE SUGGESTING? >> GOOD MORNING, YOUSEF. THANK YOU FOR HAVING ME TODAY IN THE MORNING. WE HAVE BEEN IN THE BUSINESS OF RENEWABLE ENERGY IN THE REGION FOR THE PAST DECADE. WE HAVE INVESTED OVER 2.7 BILLION U.S. DOLLARS AROUND THE WORLD. WE HAVE A PORTFOLIO CURRENTLY OF 2.7 GIGAWATTS IN THE REGION, AND INTERNATIONALLY WE HAVE SEEN THE MARKET MATURE. THE CURRENT PRICES ARE DUE TO A VERY COMPETITIVE MARKET, AND WE ARE EXTREMELY EXCITED TO DELIVER THIS PROJECT BY THE EXPORT 2020. RISHAAD: LET ME PICK UP ON THAT, THEN. YOU MENTIONED THAT YOU AND YOUR PARTNERS ARE LOOKING FOR FINANCING FOR THE PROJECT. WILL BE $800 MILLION LOAN, THAT YOU WILL BE SEEKING TO COVER THE FIRST PHASE OF THE 200 MEGAWATTS OF THE PROJECT. HOW WILL THAT BE STRUCTURED AND CAN YOU CONFIRM THAT? >> ACTUALLY, YOUSEF, THE STRUCTURE OF THE TENDER IS AN IP MODEL. WE WILL PUT OUR PARTNERS IN THE CONSORTIUM, AS WELL AS AN EQUITY SHARE, AND THE REST WILL BE FINANCED THROUGH FINANCIAL INSTITUTIONS, AS PROJECTS FINANCE. NOW THE PROJECT IS STRUCTURED INTO THREE PHASES, NOT ONE PHASE, BUT IT SHOULD BE DEVELOPED BY THE TIME OF THE OPENING OF THE EXPORT 2020 IN DUBAI. RISHAAD: MOHAMMED, RISHAAD IN HONG KONG. ABOUT HALF THE SIZE OF THE PLANT IN TERMS OF MEGAWATTS, BUT THE THING IS HERE, WOULD YOU BE A LITTLE OFFER THE SAME TERMS AS YOUR OFFERING IN DUBAI FOR THAT? MOHAMMED: THAT IS A GOOD QUESTION. NOW, THE MOST IMPORTANT ELEMENT FOR ANY COMPETITIVE PRICE IS, FRIENDLY SPEAKING, THE POLICY END, THE REGULATION THAT ALLOWS FOREIGN INVESTMENT AND COMPANIES LIKE MASDAN TO PROVIDE A VERY COMPELLING, TECHNICAL PROPOSAL, AS WELL AS THE COMMERCIAL PROPOSAL. WE HAVE SEEN THE PRICE OF WHAT IT WOULD TAKE DECLINE GLOBALLY. AND THIS IS SOMETHING OBVIOUSLY HELPED BY COMPANIES TO PUT IN A VERY COMPETITIVE PRICE. THE ABU DHABI BID OF 350 MEGAWATTS IS COMING DOWN THE LINE. THE CONSORTIUM HAS JUST ANNOUNCED THAT OUR CONSORTIUM WILL BE LED OPPOSITELY BY OUR COMPANY, AND THE FRENCH UTILITY COMPANY. WE BELIEVE IT WILL BE AS COMPETITIVE AS DUBAI. BUT WE ARE SEEING. RISHAAD: AGAIN, YOU'RE GOING TO NEED MONEY, AREN'T YOU? HOW DO YOU DO THAT? WHICH BANKS ARE YOU TALKING TO CURRENTLY? BUT IF YOU'RE NOT LOOKING AT ALONE, WOULD YOU BE COMING TO THE MARKET AND SELLING SOME PAPER? MOHAMMED: IN RECENT YEARS, JUST TO GIVE YOU SOME PERSPECTIVE, IN 2005 FOR INSTANCE, AROUND 130 U.S. DOLLARS WENT INTO THE SECTOR. LAST YEAR ALONE, 3.5 BILLION U.S. DOLLARS WENT TO THE SECTOR. IN THE MIDDLE EAST REGION. AND YOUR REPORT WAS PUBLISHED BY THE INTERNATIONAL RENEWABLE AGENCY, BASED HERE IN ABU DHABI. BY 2020, THEY SAY THERE IS 35 BILLION U.S. DOLLARS TO BE INVESTED IN THE SECTOR. THIS RENEWABLE ENERGY SECTOR IS A GROWING SECTOR. WHEN YOU MENTIONED EARLIER ABOUT THE 2030, THE KINGDOM OF SAUDI ARABIA, THE MAIN ELEMENT OF THAT VISION WAS A NINE GIGAWATT RENEWABLE ENERGY BY 2023. LIQUIDITY IS THERE. AND THERE IS AN APPETITE FROM THE LOCAL BANKING COMMUNITY, TO CONTRIBUTE NATIONAL BANK OF DUBAI, ONE OF THE LARGEST BANKS IN THE REGION, ANNOUNCE RECENTLY THAT THEY ARE COMMITTING 10 BILLION U.S. DOLLARS INTO THE SECTOR, IN THE NEXT 10 YEARS. THEREFORE, WE BELIEVE THAT THERE IS COMMITMENT FROM THE FINANCIAL WORLD, PARTICULARLY THE LOCAL BANKS PLAY AN IMPORTANT ROLE IN THAT. BUT ALSO, INTERNATIONAL DIRECT INVESTMENTS WILL COME IN. WE SEE A LOT OF INTERESTS FROM BIG DEVELOPERS AROUND THE WORLD, WHO ARE INTERESTED IN THIS MARKET. AND THIS MARKET IS GROWING VERY FAST IN THE NEXT FEW YEARS.

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Masdar to Build 800-Megawatt Solar Park in Dubai

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