This project marks a significant milestone for both partners: Jinko Power’s first venture in Oman and Sembcorp’s inaugural renewable energy project in the Middle East while possessing over a decade of experience in Oman through its 40% stake in the Salalah Independent Water and Power Plant.
Awarded by Oman Power and Water Procurement Company (OPWP), which has recently been rebranded as Nama Power and Water Procurement (Nama PWP), through a competitive bidding process in September 2023, the project is set to begin operations by 2025 and will be supported by a 20-year power purchase agreement with Nama PWP.
The solar plant will be located in an undeveloped area approximately 30 km south of Manah, 180 km from Muscat International Airport, and 350 km from Port of Sohar. The 680-hectare site, located 340–350 meters above sea level, will necessitate the construction of ancillary access roads to ensure connectivity.
Tribe Infrastructure Group’s Role
Tribe provided comprehensive financial and commercial services throughout the entire transaction process, from the bidding phase through to financial close. Services included:
Bid Plan and Project Document Review
- Review of the RFP and provision of recommendations for optimisation within the bid framework.
- Review of all Project Documents, suggesting improvements from a Sponsor perspective as well as ensuring their bankability and alignment with lender and Export Credit Agency (ECA) expectations.
- Suggesting and managing the clarifications process from a commercial standpoint.
Financial Modelling and Scenario Analysis
- Development of a robust, bespoke financial model meeting the requirements of Lenders and Sponsors.
- Performing valuation and optimisation in order to submit the most competitive bid while respecting all the requirements of both individual Sponsors.
- Preparation of investment committee presentations and all required analysis to articulate financing strategies and sensitivities to market and operational changes.
Debt Raising
- Securing committed debt financing to support the bid, in an amount and variety well in excess of bid compliance requirements, allowing Sponsors to choose from multiple potential financing plans.
- Negotiation of financing term sheets and commitment letters with a broad range of potential lenders.
- Coordinating the process of pre-bid due diligence and credit approval.
Financial Closing
- Final debt structuring and comparison of options, including with respect to the overall financing structure as well as optimal mix of currencies.
- Delivery of the final financing structure, being a blend of uncovered financing in Omani Rials alongside a USD-denominated ECA-covered tranche with different tenors and amortisation profiles.
- Coordination of the due diligence, approval process and closing process of the lenders and the ECA.
- Negotiation of the financing documentation relevant to both tranches including structuring of the various intercreditor issues.
- Advising on the hedging strategy in view of interest rate exposure between PPA signature and Financial Close.
Pete McCreanor, CEO, Tribe Infrastructure Group
“The Manah II Solar project represents a landmark opportunity to support Oman’s ambitious renewable energy goals while leveraging Tribe Group’s expertise in financial and transactional advisory services. We are proud to partner with Sembcorp Utilities and Jinko Power on this transformative project, which underscores our commitment to advancing clean energy infrastructure in the region.”
Chris Patt, Executive Director, Tribe Infrastructure Group
“Our role in the Manah II Solar PV project highlights Tribe’s capability to manage complex transactions and deliver innovative financing structures. We are happy to have contributed to the success of a project which continues the impressive commitment of Oman to sustainable energy.”
Summary
The project underscores the latest step in Oman’s renewable energy ambitions and is anticipated to contribute substantially to the region’s clean energy infrastructure.
About Tribe
Tribe Infrastructure Group is focused on realising national ambitions through innovative financing and development of critical infrastructure.
Headquartered at the Abu Dhabi and with offices in London, Riyadh, Manila and Sydney, Tribe operates as an independent and agile partner, strongly grounded in responsible value creation.
Tribe Advisory is the proprietary financial services arm of Tribe infrastructure Group. Tribe Advisory holds a category 4 licence and is supervised and regulated by the Financial Services Regulatory Authority at the Abu Dhabi Global Market.y 2018.
