ACWA Power International closes Barka 1 IWPP transaction in Oman
ACWA Power International ‘ACWA Power’, developer, owner and operator of power generation and desalinated water production plants, announced on the 19th of August 2010 the successful completion of the deal to purchase a 58% stake in the Barka 1 Independent Water and Power Project ‘IWPP’ in Oman based on a share purchase agreement with The AES Corporation, IDB Infrastructure Fund and their subsidiaries.
The remaining stake in Barka 1 IWPP is owned by Multitech LLC at 7%, while the other 35% is publicly owned as shares floated in the Muscat Security Market.
Last December ACWA Power announced winning the bid for Barka 1 IWPP in Oman which was subject to the customary stakeholder and regulatory approvals. It had competed with developer consortia from around the world for the Omani water and power production facility. The bidding culminated with final bids submitted by ACWA Power and two other bidders representing consortia of international water and power companies.
Having received all the required approvals including that from the Authority for Electricity Regulation, Oman, the lenders of the project’s finance facility, and the Capital Markets Authority, Oman, the acquisition transaction was completed after transfer of funds to the sellers and in parallel transfer of ownership to the purchasers on August 19, 2010.
Oman follows a single buyer model and thus Oman Power & Water Procurement Company is the off-taker of both power and water. Barka 1 IWPP, which is located 60kms northwest of Muscat, can deliver 456 MW to the Oman Electricity grid and 91,000 cubic meters per day of desalinated sea water. The Plant is connected and exports to the North Oman Grid; however, the power predominantly is consumed in the Muscat Governorate. The plant is equipped with dual fuel capability, Natural Gas being the main fuel and Diesel fuel oil as a back-up.
ACWA Power’s entry to the Oman market with Barka 1 IWPP is the first step of the company’s strategy to internationalize its business by building on the solid foundation of its string of successes in the Kingdom of Saudi Arabia.
Mr. Padmanathan further stated:
He went on to say: