Acwa, Mitsui group secure financing for Oman power plant
KHOBAR, August 27, 2015
A consortium including Acwa Power and Japan's Mitsui & Co has secured financing for the $630 million Salalah 2 power scheme in Oman, the Saudi Arabian company said.
The pair, along with local partner Dhofar International Development and Investment Holding, won the contract in March to construct a 445 megawatts (MW) gas-fired power plant at Raysut in the southwest of the sultanate.
Under the proposal, the consortium will also acquire Dhofar Generating, which owns and operates an existing 273 MW gas-fired plant.
Acwa said in Thursday's statement that it had signed a financing arrangement to support the Salalah 2 scheme but it did not specify the size of the loan or any other funding details beyond saying that the debt has been structured as long-term limited recourse project financing.
Banks supporting the loan were Standard Chartered, Sumitomo Mitsui Trust Bank, KfW IPEX-Bank, Sumitomo Mitsui Banking Corp, Mizuho, Bank Muscat and Bank Dhofar, the statement added.
Acwa and Mitsui will each take a 45 per cent stake in the project while Dhofar International Development and Investment Holding will hold the remaining 10 per cent.
The partners will sell electricity to Oman under a 15-year agreement. The new plant is due to be operational in January 2018, according to the March announcement. - Reuters