Oman's biggest PV project bags economic close in spite of COVID-19

Mar 24, 2020 05:14 PM ET
  • A consortium consisting of Saudi company ACWA Power, Gulf Investment Corporation (GIC) as well as Alternative Energy Projects Co. (AEPC) has actually accomplished economic closure for a 500MWac planetary system in Oman even with the COVID-19 break out.
Oman's biggest PV project bags economic close in spite of COVID-19
Image: ACWA Power

The US$ 400 million plant situated at Ibri - the biggest PV project in the Sultanate - will certainly be moneyed on a financial debt to equity proportion of 70:30. A distribute of 6 regional as well as global loan providers will certainly offer US$ 275 million in elderly financial obligation. These financial institutions consist of Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank as well as Warba Bank.

The Oman Power as well as Water Procurement Company (OPWP) granted project advancement civil liberties for the Ibri II plant to the Acwa-lead consortium in March in 2014. The champions dominated 2 consortia led by Japan's Marubeni and also Abu Dhabi's Masdar.

ACWA Power execs applauded all celebrations associated with the funding bargain for getting to enclose spite of the international turmoil brought on by the coronavirus.

" Successfully accomplishing monetary closure throughout these difficult times is a testimony to the decision of all the stakeholders in this project to maintain doing the very best we can within the restrictions most of us require to function within," claimed Paddy Padmanathan, CEO of ACWA Power.

Oman is likewise a crucial nation for ACWA Power's Middle East procedures, claimed Rajit Nanda, the business's primary financial investment police officer-- including: "Achievement of this turning point along with our companions-- co-shareholders, professionals and also the financial institution team including regional and also worldwide financial institutions - regardless of the attempting economic as well as macroeconomic difficulties common all over the world arising from the COVID-19 episode shows our structuring abilities, the strength of our lasting collaborations and also our dedication to OPWP."

The offer brings great information for the progression of renewables soon after the International Energy Agency (IEA) specified that the collision of oil costs as the international coronavirus situation magnifies might test the strategies by oil as well as gas (O&G) titans to fund a change to renewables.

The Ibri II project will certainly be established on a construct, have, run (BOO) basis as well as will provide power under a 15-year offtake arrangement. It will certainly have the ability to provide power to an approximated 33,000 houses at height generation capability.

The bargain is additionally the initial renewable resource funding in Oman by AIIB, the Beijing-headquartered worldwide multilateral growth financial institution.

In July in 2014, OPWP began the tendering procedure for 2 independent power projects (IPP), with a mixed outcome of 1.1 GW. The Manah Solar I IPP solar center and also the Manah Solar II IPP are prepared 95 miles southwest of Oman's resources Muscat.

OPWP wants to include a total amount of 5GW of solar capability by the end of 2024.

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