The Sembcorp Salalah combined cycle gas-fired power plant is being delayed while a deal to refinance the project awaits approval.

The $1bn IWPP in Dhofar, southern Oman was commissioned in 2012, with a 15-year power purchase agreement. It has a capacity of 445 MW and 15 million imperial gallons a day (MIGD) of desalinated water.
Sembcorp Salalah combined cycle gas-fired power plant
Meed reports that Sembcorp Salalah is still waiting for Oman Power & Water Procurement Company (OPWP) for refinancing. It is thought that new pricing offered for approximately $600m of project finance is unattractive to OPWP and no decision has been given to go ahead until the matter is resolved.

The new facility increases the power generation capacity in the Dhofar region from 256 MW to 745 MW

The pricing offered for the refinancing may not be attractive enough for OPWP to approve, according to banking sources.

Sembcorp Salalah’s financial reports reveal it had $578m of project finance outstanding, of which RO41m ($109m) is in local currency, at the end of 2015.

The project secured $750m of debt in 2009, with a debt-to-equity ratio of 75:25. The power facility integrates five units of gas turbines with five units of heat recovery steam generators and two steam turbines in a combined cycle configuration to achieve optimal energy production efficiency.