Manama, Bahrain - 15 May 2011: Bahrain based Instrata Capital, a regulated asset management firm specializing in infrastructure investments, has closed the acquisition of an indirect 8% stake in Oman's "Barka 1" Independent Water and Power Project (IWPP) and related companies for its Infrastructure Fund.  The Barka plant is considered one of the first IWPPs to be developed in the region and marks Instrata Capital's second investment in a regional IWPP despite the challenging economic climate.

The 456 Megawatt, 20 Million Imperial Gallons per Day (MIGD) combined cycle gas turbine power and water desalination facility is located North East of Muscat in the Sultanate of Oman.  The facility has been operational since 2003 on a Build, Own and Operate (BOO) model, and is considered one of Oman's most important infrastructure developments.  Currently, "Barka 1" meets 11% of Oman's total electricity requirements and 17% of the Sultanate's water demand, with a long term power and water purchase agreement with Oman Power and Water Procurement Company (OPWP).

"At Instrata Capital, we look to invest intelligently in infrastructure projects that support real economic growth and development.  The "Barka 1" IWPP is an important infrastructure asset for the Sultanate of Oman, and a strategic addition to our existing investment portfolio.  Despite the challenging economic climate, there remains strong investor appetite for such stable and cash generating investments," said Mr. Suhail Hajee, Chief Executive Officer at Instrata Capital. 

"The "Barka 1" IWPP is considered a benchmark throughout the Middle East as it was one of the first privately developed combined power and water projects to be established using the Build, Own, Operate (BOO) model.  The BOO model has since been used successfully in a number of new IWPP and IPP projects around the region," continued Mr. Hajee.

Instrata Capital recently reached an agreement with ACWA Power International ("ACWA Power"), a developer, owner and operator of independent water and power projects based in the Kingdom of Saudi Arabia, to jointly acquire a 58% interest in "Barka 1", of which Instrata Capital holds an 8% stake.

Mr. Khalid Alshakrani, Managing Director at Instrata Capital, said, "The GCC has seen a sharp rise in the amount, both in quantity and value, of infrastructure investments in recent years. Our internal research shows that there is significant demand for infrastructure developments including those related to power generation and water desalination in these developing countries. With an estimated total in excess of US $2 trillion set to be invested in infrastructure projects throughout the GCC and MENA region, we can say with confidence that infrastructure spending is a major growth driver for the region and an attractive investment opportunity."   

"At Instrata Capital," continued Mr. Alshakrani, "we carefully examine each investment before we commit our resources to it, ensuring not only that the project is viable, but that it will ultimately benefit the people it is meant to serve.  The "Barka 1" IWPP is one such project, and we feel strongly that it is essential to the further growth and prosperity of the Sultanate of Oman."

Instrata Capital's growing investment portfolio includes two significant IWPP investments to date, the Al Dur IWPP in Bahrain and the "Barka 1" IWPP.  Based on the success of Instrata Capital's initial fund, and growing investor appetite for stable investments capable of attractive returns, Instrata Capital is considering launching a second GCC/MENA and Turkey focused fund.  Pending local regulatory approvals. This fund will also focus on infrastructure assets making use of Instrata Capital's strong investment pipeline. 

Instrata Capital focuses its activities on pursuing innovative and value-generating infrastructure investments across the MENA and Turkey region. The team is currently evaluating projects in Saudi Arabia, UAE, Turkey, Oman, Jordan and Morocco for investment.

-Ends-

Instrata Capital:
Instrata Capital is a regulated asset management firm specializing in infrastructure investments in the Middle East and North Africa (MENA) region.  Established in 2007 and regulated by the Central Bank of Bahrain, (Investment Firm, category 2) the Instrata Capital team brings together a unique blend of international and regional infrastructure investment experience. With an active investment portfolio across the MENA region, Instrata Capital's skilled team identifies structures and manages infrastructure investments fundamental to regional economic development. Instrata Capital is backed by leading regional shareholders such as the Kuwait Investment Company S.A.K. (a subsidiary of the Kuwait Investment Authority).

For further information please contact:
Fajer Al Pachachi
Associate, Business Development
Instrata Capital BSC (c)
Tel: +973 17388183
Fax: +973 17388177
e-mail: f.alpachachi@instrata.com 

© Press Release 2011