A consortium of Saudi Arabia-based ACWA Power, Gulf Investment Corporation and Alternative Energy Projects Co. (AEPC) has secured financing for the 500MW Ibri II solar photovoltaic (PV) independent power project (IPP) in Oman. Located around 300km west of Muscat, Ibri-2 IPP is touted to be the largest utility-scale solar plant in the country. A group of six international and local lenders will provide the $275m senior debt.
Estimated to cost about US $400m, the project will be financed on a debt to equity ratio of 70:30. The project will be developed on a build, own, operate basis and will feature solar photovoltaic technology to generate 500MW of power. At its peak, the plant will produce enough electricity to power nearly 33,000 homes and avoid 340,000 tonnes of CO2 emissions per annum.
The mandated lenders, including Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank, helped structure the utility-scale solar PV project in Oman on a 16.5-year door-to-door tenor. The duration of the offtake contract for the project will be 15 years from the date of commencement of operations.
Largest utility-scale solar IPP in Oman
According to ACWA Power CEO Paddy Padmanathan, ACWA Power is glad to partner with GIC and AEPC on the largest utility-scale solar IPP in Oman. This milestone further asserts the company’s 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 stakeholders in this project to keep doing the best we can within the constraints we all need to work within,” he said.
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.