ACWA Signs Power Plant Project in Oman

Saudi-based ACWA Power International said it has successfully completed the deal to purchase a 58% stake in the Barka 1 Independent Water and Power Project (IWPP) in Oman.

ACWA, a leading developer, owner and operator of power generation and desalinated water production plants, said the transaction was 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 (7%), while the other 35% is publicly owned as shares floated in the Muscat Security Market, the company said in a statement.

Last December ACWA Power had announced winning the bid for Barka 1 IWPP in Oman which was subject to the customary stakeholder and regulatory approvals. The company had clinched the bid for the Omani water and power production facility after a tough competition from leading developer consortia. The bidding culminated with final bids submitted by ACWA Power and two other bidders representing consortia of international water and power companies, said a top official. 'We are delighted to add this asset into our portfolio and to take the first step beyond our home country,' remarked Paddy Padmanathan, ACWA Power’s president and chief executive officer.

'We are even more pleased to welcome the team of 60 professionals of whom more than half are Omani citizens, who are all currently managing this enterprise and operating and maintaining this facility, into the expanding team at ACWA Power and its operation and maintenance subsidiary companies,' he added. The acquisition transaction was completed with the transfer of funds to the sellers and in parallel transfer of ownership to the purchasers on August 19 after getting approvals from the Authority for Electricity Regulation, Oman, the lenders of the project’s finance facility, and the Capital Markets Authority, Oman. According to Paddy, Oman follows a single buyer model and thus Oman Power & Water Procurement Company is the off-taker of both power and water.- Trade Arabia