JANUARY 06, 2013

Muscat: Phoenix Power Company, which owns the 2,000MW Sur independent power project (IPP) under construction, is planning to come out with an initial public offering (IPO) by the summer of 2015. 

The company, which is expected to contribute almost 30 per cent of overall electricity in Oman once fully commissioned, will offer 35 per cent of its $350 million paid up capital to investing public. The promoters of independent power producers have to dilute 35 per cent of their holding to the investing public within four years of incorporation, in line with a contractual commitment with the government. Phoenix Power was formed in the summer of 2011. 

The $1.6 billion-project was funded by way of almost 80 per cent or $1.25 billion senior loan and around 20 per cent or $350 million by way of equity capital, Tomoki Nishino, Chief Financial Officer, Phoenix Power Company, told Times of Oman. 

Seven lenders
The senior loan was provided by seven lenders Japan Bank for International Cooperation (JBIC), Bank of Tokyo Mitsubishi, Mizuho Corporation Bank, KfW, Standard Chartered Bank, Sumitormo Trust and Sumitomo Mitsui. "JBIC provided little under 60 per cent of the senior loan," he added.

Phoenix Power Company is jointly owned by Marubeni (50 per cent), Chubu Electric Power Co (30 per cent), Qatar Electricity & Water Company (15 per cent), and Multitech (5 per cent).

Nishino, who came from Marubeni, said an advantage of independent power producers in Oman is that the promoters can get a premium at the time of divesting their holding in power companies. This clause is not there in other GCC countries like Abu Dhabi or Saudi Arabia.

60 percent work completed
Referring to the progress in implementing Sur power project, Nishino said slightly over 60 per cent of the work is complete now. "We are now targeting to generate 433MW of early power in April, 2013 and full capacity by April, 2014," he added.

Daewoo E&C is the EPC contractor, while gas turbines for the project will be supplied by Siemens. He said as many as 2,700 workers, who include those of sub-contractors, are at the site for building the power project, which is going to be the biggest power plant in Oman.

"This may go up to 4,500 to 5,000 people at the peak time of construction between May and October 2013," he noted. Nishino added that operation and maintenance of the power project will be carried out by Phoenix Operation and Maintenance Company, which is owned by the stakeholders of Phoenix Power Company with the same shareholding pattern.

The Middle East and North Africas (Mena) region, Nishino said, is important for Marubeni as the region contributes one third of its overall power generation capacity of 8,700 MW. In the Mena region, Marubeni has four power plants in the UAE, one each in Qatar, Tunisia and Turkey.

© Times of Oman 2013