Oman's largest solar PV plant achieves financial closure

1920 shuaauaeA consortium consisting of ACWA Power, GIC and AEPC has achieved the financial closure for the 500 MW solar photovoltaic (PV) Independent Power Project (IPP), the largest utility scale solar plant in Oman

The US$400mn project will be funded on a debt to equity ratio of 70:30. A syndicate of six international and local lenders, will provide the US$275mn 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 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.

ACWA Power CEO Paddy Padmanathan said, “This milestone further asserts our commitment to provide low cost and sustainable electricity supply solutions to 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.”

ACWA Power chief investment officer Rajit Nanda said, “Oman 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 500 MWac Ibri II solar project based in Ibri will be Oman’s largest utility-scale solar PV Independent Power Project to date.

The project, to be developed on a build, own, operate basis, will utilise cutting-edge solar PV technology to generate 500MW 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 the Omani capital 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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