Integrated project claims to manage A to Z requirement locally German investors plan $2 billion solar energy project in Oman
MUSCAT — Terra Nex Financial Engineering AG Switzerland (Terra Nex), in collaboration with Middle East Best Select (MEBS) Group of Funds, has announced its plans for a major $2 billion project to develop solar power resources in the Sultanate.
Terra Nex, a Swiss licensed and global wealth management company that is specialises in identifying and developing investment opportunities in the Middle East, has developed an integrated solar energy project consisting of the local implementation of the entire value chain in the renewable energy sector.
Solar power electricity generation stations are central to the project. The project aims to generate approximately 400MW. Industrial plants to manufacture the solar panels and aluminium frames to be used by the power station will also be established for local consumption and export.
Knowledge and technology transfer is another critical aspect to the success of this project. The project aims to tie up with major international technology companies and international universities with expertise in renewable energy education, to help train the local population in service this bourgeoning industry.
A delegation of 70 German investors held meeting with representatives of Public Authority for Investment Promotion and Export Development, Oman Power and Water Procurement Company, Public Authority for Electricity and Water and Special Economic Zone at Al Duqm
Shaikh Hilal bin Khalid bin Nasser al Maawali, local partner to Terra Nex and MEBS, who has helped direct the project in Oman, said in his comments, “This is great beginning for 2012 for Oman. With a major $2 billion international investment strong indication of commitment coming to Oman so early in the year, we have yet again highlighted the potential for attractive investment in the Sultanate.”
“This project touches so many aspects of Omani society – from economic growth to energy generation; from industrial diversification to education and jobs creation; from optimum utilisation of natural resources to technological innovation – the chance for exponential growth is all but definitive,” added Shaikh Hilal.
“To ensure the project’s achievability, MEBS has also launched a private investment fund named Solar EnergyPhotovoltaik In Oman as an added incentive. With a total initial investment of $200 million, this fund will finance the first solar power station” said Shaikh Hilal.
David Heimhofer, Chairman of Terra Nex and Managing Director of MEBS Group said, “Oman’s stable business environment and pro-environmental policies makes the Sultanate a natural partner to this project. The government’s aim to produce 10 per cent of its energy needs from renewable energy resources by 2020 is laudable. And this project will go a long way in making that vision a reality.”
The whole project will be financed by world investors and financiers. Majority of the parties involved are from Germany with the main investors being Middle East Best Select Fund and other European investors.
While MEBS is funded by a group of German institutional and individual investors, other investors include prominent German and European leading institutions.
“With investors providing the necessary investment of approximately $2 billion, in which $600 million will be direct equity capital and the remaining covered by loans from European financiers, this project will be a boost to Oman’s economy” said Heimhofer.
“By attracting FDI in the developing and growing renewable energy sector, Oman can become not just a regional leader in the field using the German expertise and learning from their experience, but also explores a great intrinsic value within the complete value chain associated with this economic sector, in addition to generating new jobs for the Omani people and boosting its exports” he said.
Terra Nex and MEBS have agreed with the local partner, Sheikh Hilal al Maawali, to offer 40 per cent of the capital for public subscription in the future after not more than four years from the operation of the project. The IPO will be a boon to the Omani economy by enhancing the capital markets base in the Sultanate