Terra Nex and MEBS to invest in Oman solar project

Terra_Nex_MEBSTerra Nex Financial Engineering AG Switzerland (Terra Nex) and Middle East Best Select (MEBS) Group of Funds have announced plans for a major US$2 billion project to develop solar power resources within Oman.

To generate 400MW

Solar power electricity generation stations are central to the project. The project aims to generate approximately 400MW. Industrial plants to manufacture the solar panels and aluminium frames to be used by the power station will also be established for local consumption and export.

Great beginning

Shaikh Hilal bin Khalid bin Nasser al Maawali, local partner to Terra Nex and MEBS, who has helped direct the project in Oman, commented, "This is great beginning for 2012 for Oman. With a major US$2 billion international investment strong indication of commitment coming to Oman so early in the year, we have yet again highlighted the potential for attractive investment in the Sultanate."

Pro-environmental policies

David Heimhofer, Chairman of Terra Nex and Managing Director of MEBS Group said, "Oman's stable business environment and pro-environmental policies makes the Sultanate a natural partner to this project. The government's aim to produce 10 per cent of its energy needs from renewable energy resources by 2020 is laudable. And this project will go a long way in making that vision a reality."

Boost to economy

The whole project will be financed by world investors and financiers. Majority of the parties involved are from Germany with the main investors being Middle East Best Select Fund and other European investors.

"With investors providing the necessary investment of approximately US$2billion, in which US$600m will be direct equity capital and the remaining covered by loans from European financiers, this project will be a boost to Oman's economy," said Mr. Heimhofer.

Public subscription

Terra Nex and MEBS have agreed with the local partner, Sheikh Hilal Al -Maawali, to offer 40 per cent of the capital for public subscription in the future after not more than four years from the operation of the project. The IPO will be a boon to the Omani economy by enhancing the capital markets base in the Sultanate.

EPC contractor

Siemens AG has already signalled its high interest in the project at various levels. The company's Solar and Hydro Division is keen to act as the EPC contractor to provide the PV-powerplant as a turnkey solution with strong preference for local supplies and services, thus being the basis for the establishment of the industrial resources required by the Sultanate to be a fully independent solar energy producer.

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