Sembcorp Industries (Sembcorp) announces that it has, through an 80%-owned joint venture to be set up by its wholly-owned subsidiary Sembcorp Utilities with Jinko Power Technology (Jinko Power), received an award by Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project (IPP) in Manah, Sultanate of Oman. The 500MW solar plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
This project will complement Sembcorp’s existing capabilities and track record in the region. The Salalah Independent Water and Power Plant, one of the most energy-efficient power and water plants in the Dhofar region in the Sultanate of Oman, is 40% owned by Sembcorp.
Andy Koss, CEO of UK & Middle East, Sembcorp Industries, said, “The Manah Solar II IPP will mark Sembcorp’s first renewables project in the Middle East. To be constructed in the Sultanate of Oman, the project will leverage our strong network and presence for over 10 years in the country built through Salalah Independent Water and Power Plant. We are delighted to be awarded this project and look forward to working with Jinko Power to support the global energy transition.”
This project is expected to be financed through a mix of internal cash resources and external bank borrowings. It is not expected to have a material impact on the earnings per share, net asset value per share, and leverage of Sembcorp for the financial year ending December 31, 2023.
