Oman’s largest solar PV power plant achieves financial close

A consortium consisting of ACWA Power, GIC and AEPC said this week that they achieved financial closure for a 500-MW solar PV power plant at Ibri in the Sultanate of Oman. It is currently the largest solar PV power plant in the country.

The 500 MWac Ibri II solar project is an Independent Power Project (IPP) that will be developed on a BOO (build, own, operate) basis. Located around 300km west of Muscat, Ibri-2 IPP will contribute towards increasing power supplies in the Sultanate. Oman Power & Water Procurement Company (OPWP) signed a 15-year offtake agreement for power produced by the project.

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.

“We are pleased to partner with GIC and AEPC on the largest utility scale solar IPP in Oman,” said Paddy Padmanathan, Chief Executive Officer of ACWA Power. He added, “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 at ACWA Power said that finalizing the financing for this project during the COVID-19 pandemic “demonstrates our structuring capabilities, the resilience of our long lasting partnerships and our commitment to OPWP.”