Bahrain-based Instrata Capital, a regulated asset management firm specializing in infrastructure investments, has recently closed the acquisition of a stake in Oman's Sembcorp Salalah Independent Water and Power Project (IWPP) for the Bunyah GCC Infrastructure Fund (Bunyah) from Oman Investment Corporation (OIC).
The Sembcorp Salalah IWPP is a 445 MW, 15 million imperial gallons per day (MIGD) combined cycle gas turbine power and water desalination plant located in the southern region of Salalah.
It is currently under construction and is expected to be completed by April.
The project has been developed on a build, own and operate (BOO) model, and will play an important part in meeting demand in one of Oman's key growth regions.
The entire output of the project is contracted under a long-term power and water purchase agreement with Oman Power and Water Procurement Company (OPWP).
"The Salalah IWPP is an important infrastructure asset for Oman, and a strategic addition to our existing investment portfolio in the region," said Suhail Hajee, chief executive officer at Instrata Capital.
"The current economic uncertainties have led to an increased focus on infrastructure investment which delivers stable cashflows to investors," said Hajee.
Khalid Alshakrani, managing director at Instrata Capital, said 2011 was a challenging year for investment in the region.
"With this backdrop, we are very pleased to have closed the Sembcorp Salalah acquisition," said Alshakrani.
"Notwithstanding a challenging economic environment, demand for additional infrastructure projects remains constant driven by strong underlying fundamentals including population and GDP growth and we are confident that there will be significant opportunities for additional infrastructure investment in 2012 and beyond."
Alshakrani added: "At Instrata Capital, we are proud of our expertise and understanding of the infrastructure asset class which is demonstrated by our successful track record of investment in infrastructure projects."
© Arab News 2012
