France’s GDF Suez is set to complete the debt financing for the $1.3bn Barka 3 and Sohar 2 independent power projects (IPP) in the first week of September.

Sources close to the two projects say that financial close is slightly behind schedule, as the it was originally planned to occur by the end of August. The first drawdown of the loans is now expected around the end of September.

The financing will cover the majority of the $1.8bn development cost of the two plants. The two plants are being developed and financed separately, but are being worked on in tandem.

Each plant will have a capacity of 744MW and are due to be fully commissioned by 2013, with around 375MW of each plant coming online by May 2012.

Seven banks are contributing to the funding, which will have an 18-year tenor. The banks include:

  • Bayern LB (Germany)
  • Credit Agricole CIB (France)
  • Natixis (France)
  • CIC (France)
  • Europe Arab Bank (UK)
  • HSBC (UK)
  • KFW (Germany)