Allen & Overy LLP has advised the commercial lenders on the financing of the Sur IPP Project in the Sultanate of Oman, which achieved Financial Close on 28 November. The plant, located near Sur in the north-east of Oman, will have a capacity of 2000MW.

 

Phoenix Power Company SAOC, the project company, which was named during the difficult times faced in Japan earlier this year, is owned by a consortium of Marubeni Corporation, Chubu Electric Power Co., Inc., Qatar Electricity and Water Company (Q.S.C.) and Multitech LLC (part of the Suhail Bahwan Group (Holding ) LLC). The Power Purchase Agreement was signed in July 2011 following a highly competitive bidding process in which Phoenix was able to beat rival bidders to be selected as preferred bidder by Oman Power and Water Procurement Company.

The USD1.244 billion of debt financing for the project comprises approximately USD700 million to be provided by Japan Bank for International Cooperation, and approximately another USD550 million to be provided by commercial banks Bank of Tokyo-Mitsubishi UFJ, Ltd., KfW IPEX-Bank GmbH, Mizuho Corporate Bank, Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Trust and Banking Company Limited, including a tranche covered by export credit insurance provided by Nippon Export and Investment Insurance.

The Allen & Overy team was led by Partner Lorraine Ball  (Projects, Energy and Infrastructure, London), supported by Associates Rachel O’Reilly, Ed Moser, Luke Ashworth, Victoria Pollard and Trainee Jennifer Etherington. Partner Nigel Pritchard  led the team providing EPC and O&M advice, supported by Counsel Simon Holloway and Senior Associate Luke Muchamore.