ACWA Power reaches financial closure for 500MW solar project in Oman

A consortium led by ACWA Power has achieved financial closure for its 500MW solar PV Independent Power Project (IPP), the largest utility scale solar plant in the sultanate of Oman.

The Saudi Arabian power company and its partners GIC and APEC secured funding on a debt to equity ratio of 70:30 for the US$400 million project. A syndicate of six international and local lenders will provide the $275m senior debt.

Lead banks under the agreement include Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank, and Warba Bank. The deal is structured on a 16.5-year door-to-door tenure.

ACWA Power chief executive Paddy Padmanathan said: “This milestone further asserts our 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 stake holders in this project to keep doing the best we can within the constraints we all need to work within.”

The Ibri 2 solar project – based in Ibri – will become Oman’s largest utility-scale solar PV IPP to date and will supply an estimated 33,000 homes with clean electricity at peak generation capacity.