ACWA Power Barka, one of the largest power generation companies in the sultanate, is planning RO5.78mn in financing for an expansion project to produce 10mn imperial gallons per day (MIGD) of water, according to a company disclosure to the Muscat Securities Market (MSM) on Monday.
ACWA Power held an ordinary general meeting (OGM) on Sunday at the Grand Hyatt Muscat in which its board of directors approved the company's proposed expansion project and loan plans to finance the project.
The OGM also approved the refinancing of ACWA Power's existing long-term loan facility.
The company will enter into a supplemental operation and maintenance agreement with a related party to operate and maintain the expansion project.
"The OGM approved the company obtaining a loan from a related party up to RO5.78mn," ACWA Power Barka said in its disclosure.
According to its latest financial report, the company had long-term bank loans of around RO61mn, as of June 2012, which were provided by a consortium of local and overseas banks in pursuance with a power and water purchase agreement (PWPA) to finance the project cost.
© Muscat Daily 2012
