AIIB to help finance 500MW solar PV plant in Oman
The Asian Infrastructure Investment Bank (AIIB) is set to help finance the 500MW Solar PV Independent Power Plant Project in Oman.
The AIIB will provide $60 million towards the total cost of $400 million, with the rest to be funded by the sponsors - ACWA Power, Gulf Investment Corporation and Alternative Energy Projects Co - and other financial institutions.
The project, which is being developed by the borrower Shams Ad-Dhahira Generating Company, is being implemented under Build, Own and Operate model under a bilateral arrangement of offtake by Oman Power and Water Procurement Co for 15 years.
The lender is targeting formal approval for the financing next month. The planned commercial operation date for the plant is 1 June, 2021.
The plant is being built to increase the availability of the renewable power generation capacity and contribute to fillling the anticipated gap in the peak demand; and also to reduce the dependence on gas and other fossil fuels for electricity generation and move to a more balanced and environmentally sustainable energy mix.
