Following the news that private-sector developer of a 500MW solar independent power project (IPP) in Oman reached financial close for the project;
Richard Thompson, Editorial Director at GlobalData, offers his view:
The closure of this IPP in Oman is a positive sign for the region at a time of heightened uncertainty, despite having achieved five months later than initially expected. This is a remarkable milestone, especially given the constraints associated with containment measures against the coronavirus (COVID-19) outbreak.
“The Oman Government has suffered from a deteriorating credit rating in recent years, and no utility-scale solar IPPs had been procured – prior to the award of the Ibri 2 solar IPP scheme last year.
“Several other independent projects are awaiting financial closure across the region, including those whose contracts were awarded between late 2019 and early 2020 such as the 2.4GW Fujairah F3 combined-cycle gas turbine (CCGT) plant, the 800MW Al-Kharsaah solar PV IPP in Qatar, and the 900MW fifth phase of Dubai’s Mohammed bin Rashid a-Maktoum solar park project. The Yanbu 4 independent water project (IWP) and Dammam West independent sewage treatment plant (ISTP) in Saudi Arabia are also of note.
“So far, the contract awards for two major renewable energy schemes – Abu Dhabi’s 2GW Al-Dhafra solar IPP and the four projects under the second round of Saudi Arabia’s National Renewable Energy Project – have been delayed. The expectation is that the clients will award the contracts once the containment measures to combat the coronavirus outbreak ease.”
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