Oman's largest utility-scale solar power project achieves financial closure

500-megawatt project is being developed by a consortium of ACWA Power, GIC and AEPC

Photo used for illustrative purposes.

Photo used for illustrative purposes.

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A consortium consisting of ACWA Power, Gulf Investment Corporation (GIC) and Alternative Energy Projects Co (AEPC) has achieved the financial closure for Oman's largest utility-scale solar power project, it was announced on Tuesday.

The 500-megawatt (MW) Ibri II solar photovoltaic (PV) Independent Power Project (IPP), scheduled to be developed on a BOO (build, own, operate) basis, is backed by a 15-year offtake contract from the commercial operations date with Oman Power & Water Procurement Company (OPWP), consortium member ACWA Power said in a press statement.

The project tariff wasn't disclosed.

The statement said the approximately $400 million project would be funded on a debt to equity ratio of 70:30 with syndicate of six international and local lenders - Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank - providing $275 million senior debt on a 16.5-year door-to-door tenor.

Paddy Padmanathan, President and CEO of ACWA Power, noted that "achieving financial closure during these challenging times is a testament to the determination of all the stake holders in this project to keep doing the best we can within the constraints we all need to work within."

Rajit Nanda, Chief Investment Officer of ACWA Power, added that the project is the first renewable energy financing for AIIB in the GCC region, paving the way for a stronger partnership with the Beijing based international multilateral bank in the future.

The 500 MWac Ibri II solar project will be able to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year, the press statement said.

(Writing by Madhura Deulgaonkar; Editing by Anoop Menon)


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