Saudi Arabian energy company ACWA Power along with its consortium partners Gulf Investment Corporation (GIC) and Alternative Energy Projects Co (AEPC) has achieved financial closure.

The achievement is for the 500MW solar photovoltaic (PV) Independent Power Project (IPP), located in the Sultanate of Oman.

For this $400m project, a syndicate of six international and local lenders have agreed to offer $275m senior debt.

The lenders include the Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank.

These financial institutions have agreed to finance the project on a 16.5-year door-to-door tenor.

It will be AIIB’s first renewable energy financing in Oman and in the Gulf Cooperation Council (GCC) region.

ACWA Power CEO Paddy Padmanathan said: “We are pleased to partner with GIC and AEPC on the largest utility-scale solar IPP in Oman.

“This milestone further asserts our commitment to provide low cost and sustainable electricity supply solutions to our esteemed clients like the Oman Power & Water Procurement Company (OPWP).

“Successfully achieving financial closure during these challenging times is a testament to the determination of all the stakeholders in this project to keep doing the best we can within the constraints we all need to work within.”

Located around 300km west of Muscat, the Ibri-2 IPP solar project will be developed on a build, own, operate (BOO) basis.

It will be equipped with solar PV technology that will generate clean energy sufficient to power 33,000 homes in the region while offsetting 340,000 tonnes of carbon emissions annually.

The solar PV project is reported to be the largest utility-scale solar plant in the country to date.