The Sohar power and water project is making headway with the completion of project finance agreement with a syndicate of international and local banks. Sohar Power Company (SPC), which is implementing the country's largest independent water and power project, has earlier signed $620 million financing agreements with lending institutions.
According to Oman Observer, the financing package consists of $549.89 million facility and RO 27 million-performance bond facility from a local bank. The project consists of a 585 MW combined cycle gas turbines plant and a 33 million gallons a day water desalination plant.
The company will sell electricity and water to the Oman Power and Water Procurement Company under a 15-year power and water purchase agreement commencing from April, 2007. The first phase of 360 MW is scheduled to be operational by April 2006.