ACWA/Mitsui Secure Oman Power Finance

A consortium of Saudi firm ACWA, Japan’s Mitsui and local firm DIDIC have secured $630mn of loans to fund the 445MW Salalah-2 CCGT power plant at Raysut on the coast of Oman’s southernmost Dhofar province.

The debt takes the form of long-term limited recourse project financing from Standard Chartered, Sumitomo Mitsui, Mizuho, Germany’s KfW IPEX-Bank, and Oman’s Bank Muscat and Bank Dhofar.

Dhofar Generating (ACWA 45%, Mitsui 45%, DIDIC 10%) was awarded a build-own-operate contract for the plant by state utility OPWP. The operator will sell power to OPWP under a 15-year contract.

The plant will be built for January 2018 start-up under a lump sum turnkey EPC contract by China’s Sepco III. The consortium will take over the existing 273MW Dhofar power plant (MEES, 27 March). (CONTINUED - 202 WORDS)