The financing of 135 million euros has the participation of both international banks and local entities.
Madrid, July 19 of 2022.
GS Inima, a world leader in the water sector, positioned as one of the Groups with the largest volume of plants in terms of concessions and with the longest history in reverse osmosis desalination, has reached the financial closure of the Barka V desalination plant for a value of 135 million euros and whose client is Oman Power and Water Procurement.
GS Inima has obtained the financing of 100% of the needs of the project by signing a 22-year non-recourse loan under the Project Finance modality and a bridge loan to finance the equity of the project (Equity Bridge Loan). Both international and local financial entities have intervened in long-term financing. The majority stake is held by Korea Export-Import Bank (Kexim) followed by Bank Muscat and Standard Chartered Bank. For its part, the Equity Bridge Loan (EBL) has been financed by KEB Hana Bank London for a term of 3 years.
Additionally, a line has been obtained through the local bank Ahli Bank for the financing of the VAT of the project, which has been an important milestone since this tax has been established very recently in Oman and therefore there was no experience in this type of financing. .
The Barka V desalination plant, located 58 kilometers west of the capital, Muscat, has a capacity of 100.000 m3/day and will supply drinking water to a population of 800 people. The completion of the construction and commissioning of the project is scheduled for June 30, 2024, being developed under a BOO contract model (Build, own, operate in its acronym in English) for a period of operation of 20 years.
“It is an honor for us to collaborate with world-class financial institutions to make the Barka V desalination plant project viable, which will contribute to the protection of the region’s water resources and provide a new source of drinking water. Together with Ghubrah III, which will be the largest IWP in the country, we will continue to contribute to the increase and improvement of water infrastructure in Oman”
“The financial closing of Barka V represents an important achievement for the company, as it occurred in a scenario of high uncertainty and volatility in the financial markets caused by the pandemic and subsequently the war situation in Ukraine. This result would not have been possible without the joint efforts of our client OPWP, the financing entities and GS Inima. Barka V reaffirms the Company’s position as a project finance partner for our clients and increases our recurring revenue base that will support the future growth of GS Inima”
User GS Inima in reverse osmosis desalination.
GS Inima has extensive knowledge of the water management and treatment sector, as well as enormous experience building and operating desalination plants around the world. The project is part of the water supply contract signed on December 24 in December 2020 between OPWP (Oman Power and Water Procurement Company) and GS Inima for water supply for 20 years. GS Inima has a 100% participation in the Concession, EPC and O&M of this project. The plant is designed following the highest standards of quality and respect for the environment that have characterized GS Inima during its 67-year history.