AIIB Offers $60 Million for Oman’s 500 MW Solar Project

The total cost of the project is estimated to be $400 million


The Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, has offered a loan of $60 million (~₹4.3 billion) for a 500 MW solar project in Oman. The independent power project is located at Ibri.

The total cost of the project is expected to be $400 million (~₹28.5 billion). The solar project is being developed by Shams Ad-Dhahira Generating Company. The commercial operation date of the project has been scheduled for June 1, 2021.

Oman Power and Water Procurement Co (OPWP) awarded the project to a consortium led by International Company for Water and Power Projects (ACWA Power). The other sponsors are the Gulf Investment Corporation (GIC) and Alternative Energy Projects Corporation (APEC).

The project is being implemented on a build, own and operate model under a bilateral offtake arrangement by OPWP for 15 years.

The primary objectives of the project are to increase the availability of renewable power generation capacity, contribute to fill the gap in the peak demand, and reduce the dependence on gas and other fossil fuels for electricity generation. The results of the project will be measured through an increase in renewable power generation capacity in the country, delivery of electrical energy generated by the project, and greenhouse gas emissions provided by the project.

Mercom had reported recently that a consortium of Kuwait and Saudi Arabian companies won the bid to develop 500 MW of large utility-scale solar independent power projects located at Ibri in Oman, built at an approximate value of $400 million.

In November 2018, Oman Power and Water Procurement Company (OPWP) had received bids from three international consortia for the $400 million solar project. The request for a proposal for the development of Ibri II Solar IPP was issued on June 4, 2018.  The project was expected to generate enough power to supply 33,000 homes and offset 340,000 tons of carbon dioxide emissions each year.

Image credit: Atlas Renewable Energy


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