The Oman Power & Water Procurement Company (OPWP) is hoping to reach a financial close on Barka and Sohar independent water projects (IWPs) by the end of 2015.

It is also aiming for a financial close on Ibri/Sohar 3 independent power project in January 2016.

MEED has learned that a consortium of Spain’s Valoriza, local Sogex and the Oman Brunei Investment Company is expected to be awarded the 250,000 cubic metres a day (cm/d) Sohar IWP.

Four local banks; Bank Muscat, Oman Arab Bank, Bank Dhofar and Bank Sohar, have committed to a 20-year financing deal for the project.

Barka IWP, with a capacity of 280,000 m/d, will be awarded to a consortium of Itochu (Japan), Engie (UK/France), Degremont (France) and WJ Towell (local). It will be financed by export credit agencies and international banks.

The combined project financing is expected to reach $600m, with an 80:20 debt to equity ratio.

International banks will take an important role in the $1.2bn financing for the Ibri/Sohar IPP. Two local banks will also participate in the 15-year project finance deal.

MEED reported in November that Acwa and Mitsui were the frontrunners for the project, which will have a capacity of 3,200MW over two sites.

OPWP did not respond to a request for comment.

Oman has the most successful IWPP programme in the GCC, with two IPPs already reaching a financial close in 2015.

Bank Muscat financed the 120MW Musandam IPP, developed by Oman Oil Company and South Korea’s LG International.

The 400MW Salalah IPP is being developed by Japan’s Mitsui and Saudi Arabia’s Acwa Power. They secured around $450m in project finance from seven Japanese, local and European banks for the $620m project.

However, with liquidity tightening, banks will now be offering higher pricing to developers.