Singapore-based energy company Sembcorp Industries (Sembcorp) announced on Monday that it has, through an 80 percent-owned joint venture to be set up by its wholly-owned subsidiary Sembcorp Utilities with China's Jinko Power Technology (Jinko Power), received an award by Oman Power and Water Procurement Company (OPWP) to build, own and operate (BOO) the Manah Solar II Independent Power Project (IPP) in Manah, Oman.
The 500 megawatt (MW) solar power plant, Sembcorp's first greenfield renewables project in the Middle East, is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP, Sembcorp said in a press statement.
Andy Koss, CEO of UK & Middle East, Sembcorp Industries, said, "The Manah Solar II IPP will mark Sembcorp's first renewables project in the Middle East. To be constructed in the Sultanate of Oman, the project will leverage our strong network and presence for over 10 years in the country built through Salalah Independent Water and Power Plant. We are delighted to be awarded this project and look forward to working with Jinko Power to support the global energy transition."
The statement said the project would be financed through internal cash resources and external bank borrowings.
The project value wasn't disclosed, but the local newspaper Oman Daily Observer said last week that Manah I and Manah II IPPs represent a combined investment value of 300 million Omani riyals ($777 million).
In the Gulf region, Sembcorp operates conventional water and power plants in Oman and the UAE. The Salalah Independent Water and Power Plant (Salalah IWPP), located in the Dhofar region in Oman, is 40 percent owned by Sembcorp. The company also owns 40 percent of Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE.
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(Writing by Anoop Menon; Editing by Bhaskar Raj)