A consortium comprising ACWA Power, Gulf Investment Corporation and Alternative Energy Projects Co (AEPC) has achieved financial closure for a 500 MW solar PV plant at Ibri in Oman. It is currently the largest solar PV plant in the country.
The plant is an Independent Power Project (IPP) that will be developed on a build, own, operate basis. Located around 300km west of Muscat, the Ibri-2 IPP will contribute towards increasing power supplies in the Sultanate. Oman Power & Water Procurement Company signed a 15-year offtake agreement for power produced by the project.
The c.$ 400 million project will be funded on a debt to equity ratio of 70:30. A syndicate of six international and local lenders, will provide the $275 million senior debt. The mandated lead banks include Asian Infrastructure Investment Bank, Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank.
This deal also represents the first renewable energy financing in Oman as well as the GCC region by AIIB, the Beijing-headquartered international multilateral development bank.
“We are pleased to partner with Gulf Investment Corporation and AEPC on the largest utility scale solar IPP in Oman,” said Paddy Padmanathan, chief executive of ACWA Power. He added that “successfully achieving financial closure during these challenging times is a testament to the determination of all the stake holders in this project to keep doing the best we can within the constraints we all need to work within”.
Rajit Nanda, chief investment officer at ACWA, said that finalizing the financing for this project during the COVID-19 pandemic “demonstrates our structuring capabilities, the resilience of our long lasting partnerships and our commitment to OPWP”.