Acwa Power consortium reaches financial close for 500MW Oman solar IPP
A consortium of Saudi Arabia’s Acwa Power, Kuwait’s Gulf Investment Corporation (GIC) and Alternative Energy Projects Company (AEPC) has reached financial close for the 500MW Ibri 2 photovoltaic (PV) solar independent power producer (IPP) project in Oman.
The $400m Ibri 2 IPP project will be funded on a debt to equity ratio of 70:30, with a syndicate of six international and local lenders providing the $275m senior debt.
The mandated lead banks for the transaction are: Asian Infrastructure Investment Bank (AAIB), Bank Muscat, Riyadh Bank, Siemens Bank, Standard Chartered Bank and Warba Bank.
The debt has been structured on a 16.5 year door-to-door tenor. Covington was Lenders council for the transaction, with Dentons acting as council for the sponsors.
The Acwa Power consortium was awarded the contract for the Ibri project in May last year.
Oman's government is planning for renewable energy to contribute 10 per cent of the country's total generating capacity in the main interconnected system by 2025.
Oman Power & Water Procurement Company (OPWP) is planning to overseen the development of two planned 500-600MW PV projects for its next major solar schemes. The utility company had been planning to issue tender documents for the Manah 1 and Manah 2 IPP projects in March, however, this may be pushed back due to the covid-19 outbreak.
After having received prequalification entries from 14 groups in August last year, OPWP prequalified nine groups in December to participate in the upcoming bidding round for the Manah projects.
According to sources close to the projects, the client is preparing to issue the request for proposals (RFP) to prequalified groups in March.
The following nine groups have been prequalified:
• Abu Dhabi Future Energy Company (Masdar), EDF Renewables (France)
• Acwa Power (Saudi Arabia)
• Eni (Italy), SB Energy (Japan)
• Jinko Power (China)
• Korea Western Power Company (South Korea), Hanyang Corporation (South Korea), Solar Reserve (US), Nafath Renewable Energy (Oman)
• Marubeni Corporation (Japan)
• Power Construction Corporation of China
• Tag Energy, Al-Shanfari Group (Oman)
• Total Solar International (France)
The PV solar plants will be developed at Manah, 150km southwest of the capital Muscat. US/Indian Synergy Consulting has been appointed as financial adviser by OPWP, with DLA Piper providing legal advisory services and Germany's Fichtner providing technical advisory services.
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