In one of the largest solar projects currently under development in the Middle East, law firm Milbank, Tweed, Hadley & McCloy has represented Qatar Solar Technologies (QSTec) in securing US $1 billion in financing for construction of a manufacturing plant in the energy hub of Ras Laffan Industrial City.
Financing is being provided by Qatari bank Masraf Al Rayan. Royal Bank of Scotland acted as financial advisor to QSTec. Milbank’s deal team was led by London project finance partner John Dewar, chair of the firm’s Islamic Finance Practice.
QSTec’s new facility will produce some 8,000 metric tons annually of polysilicon, which when converted into solar modules, is projected to capture enough solar energy to power 240,000 homes per year. QSTec is at the forefront of a nascent market for renewable energy in the Gulf Region, which remains the source of much of the world’s oil supplies.
Dr. Khalid Klefeekh Al Hajri, Chairman and CEO of QSTec said in a statement that the new plant represents “a major step in the development of a new industry in Qatar for solar energy. The growth in demand for solar applications and technologies will only expand in Qatar, the region and the world while preserving our natural resources.” He added that the company expects to be able to eventually export its polysilicon materials to other markets globally.
“The commitment by QSTec in developing such an ambitious polysilicon manufacturing facility in the heart of the Gulf is a milestone for advancing solar energy in the region. That is further reflected by the scale of single-source financing from Masraf Al Rayan, one of the leading financial institutions in the Islamic world,” Mr. Dewar said.
“We are pleased to be working with QSTec in taking the next critical step in becoming the one of the premiere sources for high-grade solar modules in the Middle East,” he added.
Working with Mr. Dewar on the financing was Milbank associate Mohammad Munib Hussain, also of the London office.
