Salalah IWPP developer looks east for financing
Sembcorp in talks with five Chinese banks for funding
Singapore’s Sembcorp, the preferred bidder on Oman’s Salalah IWPP, is attempting to raise finance from five Chinese banks to help fund the US $1 billion project.
The firm regained preferred bidder status in June after Oman Power & Water Procurement Company went back to the second- and third-ranked consortiums as a result of Sembcorp’s decision to ask the GCC utility to provide more money for the deal.
The Salalah IWPP, which is now behind schedule, will produce 400MW of power and 15 millions gallons a day of desalinated water, according to MEED.
Sembcorp had originally sought financial assistance from local and Western banks, but is now looking to unnamed Chinese investment outfits, in conjunction with export credit agency Export-Import Bank of China.
MEED said that Sembcorp hopes to raise the money by the end of November.
“The deal will now be done by a group of about 10 banks, with no syndication of the debt, and one export credit agency,” MEED quoted one UAE-based banker close to the deal as saying.