Financial closure achieved for the largest solar Photovoltaic power plant in Oman

• Syndicate of Six international and local lenders including Asian Infrastructure Investment Bank (AIIB), to provide $ 275 million senior debt for the project

United Arab Emirates, Oman: A consortium consisting of ACWA Power, GIC and AEPC has achieved the financial closure for the 500 MW solar photovoltaic (“PV”) Independent Power Project (IPP) at Ibri in the Sultanate of Oman, which is also the largest utility scale solar plant in the country as of date.

The c.$ 400 million project will be funded on a debt to equity ratio of 70:30. A syndicate of six international and local lenders, will provide the  $275 million senior debt. The mandated lead banks including Asian Infrastructure Investment Bank (“AIIB”), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank, helped structure the largest utility scale solar PV project in Oman on a c. 16.5 year door-to-door tenor.

This deal also represents the first renewable energy financing in Oman as well as the GCC region by AIIB, the Beijing headquartered international multilateral development bank.

Paddy Padmanathan, President and CEO of ACWA Power, said: “We are pleased to partner with GIC and AEPC on the largest utility scale solar IPP in Oman. This milestone further asserts our commitment to provide low cost and sustainable electricity supply solutions to our esteemed clients like the Oman Power & Water Procurement Company (“OPWP”). Successfully 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, said: “We are pleased to achieve a successful closing of yet another financing in Oman which is a key country for ACWA Power’s operations in Middle East. Achievement of this milestone together with our partners – co-shareholders, contractors and the bank group comprising of international and local banks - notwithstanding the trying financial and macroeconomic challenges prevalent the world over resulting from the COVID-19 outbreak demonstrates our structuring capabilities, the resilience of our long lasting partnerships and our commitment to OPWP. The project which is the largest utility scale Solar PV project in Oman, will also be 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.”

Project Summary :

The 500 MWac Ibri II solar project is an Independent Power Project (IPP) which will be Oman’s largest utility-scale solar PV Independent Power Project. The project, to be developed on a BOO (build, own, operate) basis, will utilize cutting-edge Solar Photovoltaic Technology to generate 500 MWac of renewable power. At peak generation capacity, the plant output will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tonnes of carbon dioxide emissions a year. Located around 300km west of Muscat, Ibri-2 IPP will contribute towards increasing power supplies in the Sultanate. The term of the offtake contract for the project will be 15 years from the commercial operations date.

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About ACWA Power:

ACWA Power is a developer, investor and operator of power generation and desalinated water production plants. Currently present in 13 countries in the Middle East, Africa, Central Asia and South East Asia, ACWA Power employs over 3,500 people.

ACWA Power’s portfolio includes 58 assets with an investment value of USD 48 billion, producing 33.9 GW of power and 5.2 million m3 /day of desalinated water delivered on a bulk basis to address the needs of state utilities on long-term, off-taker contracts under Public-Private-Partnership model.

Registered and established in 2004 in Riyadh, Saudi Arabia, ACWA Power is co-owned by nine Saudi conglomerates, including Vision International Investment Company, Public Investment Fund (PIF), Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).

ACWA Power’s mission is to reliably deliver electricity and desalinated water at a low cost, thereby contributing effectively to the sustainable, social and economic development of communities and countries. ACWA Power is committed to the values of Safety, People and Performance in operating its business across all geographies. For more info, please visit www.acwapower.com 

Media contact details:
Mohamed Yousef Ibrahim
Manager – Marketing & Public Relations
mibrahim@acwapower.com
+966(0)556607402

Tags: #ACWAPower #Oman #solar PV #Power

© Press Release 2020