A consortium led by Japan’s Marubeni Corporation has signed financing agreements with export credit agencies (ECAs) and commercial banks for a 2,000MW independent power project (IPP) at Sur. Agreements were signed on 21 November and financial close is expected by the end of November.  

The $1.6bn project is sponsored by Marubeni (50 per cent), Qatar Water & Electricity Company (15 per cent), Japan’s Chubu Electric Power (30 per cent) and the local Multitech (5 per cent), which is a subsidiary of Bahwan Engineering Group. The group was selected in July (MEED 22:7:11).

The financing includes $1.244bn debt, of which $697m has been provided by Japan Bank for International Cooperation (Jbic) and $547m in a commercial debt tranche.

The UK’s Standard Chartered, Germany’s KfW, Japan’s Bank of Tokyo-Mitsubishi, Japan’s Mizuho, Japan’s SMBC and Sumitomo Trust and Banking provided debt in the commercial tranche. Japanese ECA Nippon Export and Investment Insurance (Nexi) is providing cover on $182m of the financing. Tenor on the debt is 17 years.

Marubeni will need to bring 400MW of power capacity online by the summer of 2013 as part of its contract with OPWP, to help the country meet its peak demand during the summer months. Full commissioning is scheduled for the following summer.

The client on the project, Oman Power and Water Company (OPWP), is advised by the UK’s Ernst & Young, DLA Piper, British Power International and Glen House Capital Strategies. UK law firm Allen & Overy is advising the commercial lenders. The UK’s Linklaters is advising JBIC and Nexi. Norton Rose is legal adviser to the sponsors and the US’ Verus Partners is financial adviser.