Largest solar PV plant in Oman secures $275 million in funding
A consortium consisting of ACWA Power, Gulf Investment Corporation (GIC) and Alternative Energy Projects Co. (AEPC) has achieved the financial closure for the 500 MW solar photovoltaic independent power project (IPP) at Ibri in the Sultanate of Oman, which is also the largest utility scale solar plant in the country as of date.
The $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 including Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank, helped structure the largest utility scale solar PV project in Oman on a 16.5 year door-to-door tenor.
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.
The 500 MWac Ibri II solar project is an Independent Power Project (IPP) which will be Oman’s largest utility-scale solar PV Independent Power Project. The project, to be developed on a BOO (build, own, operate) basis, will utilize cutting-edge Solar Photovoltaic Technology to generate 500 MWac of renewable power.
At peak generation capacity, the plant output will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year. Located around 300km west of Muscat, Ibri-2 IPP will contribute towards increasing power supplies in the Sultanate. The term of the offtake contract for the project
Paddy Padmanathan, Chief Executive Officer of ACWA Power said:
“We are pleased to partner with GIC and AEPC on the largest utility scale solar IPP in Oman. This milestone further asserts our commitment to provide low cost and sustainable electricity supply solutions to our esteemed clients like the Oman Power & Water Procurement Company (“OPWP”). 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 of ACWA Power said:
“We are pleased to achieve a successful closing of yet another financing in Oman which is a key country for ACWA Power’s operations in Middle East. The project which is the largest utility scale Solar PV project in Oman, will also be the first renewable energy financing for AIIB in the GCC region, paving the way for a stronger partnership with the Beijing based international multilateral bank in the future.”
Soure: Press Release by ACWA Power. Photo credit: ACWA Power.
