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Overview

Bank of China (Singapore Branch) contributes $100 million to syndicated loan for 500MW Manah II Photovoltaic Independent Power Project

Commitments (Constant USD, 2023)$100,000,000
Commitment Year•2023Country of Activity•OmanDirect Recipient Country of Incorporation•OmanOverseas Jurisdiction•SingaporeSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 31, 2023
Start (actual)
Nov 16, 2023
End (planned)
Apr 22, 2025
End (actual)
Dec 29, 2024
Last repayment (originally scheduled)
Dec 27, 2039

Geospatial footprint

Map overview

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The scope of the project includes the development, financing, design, engineering, construction, ownership, operation and maintenance of the 500MW Manah II Solar IPP in the Wilayat of Manah in Oman’s Al Dakhiliyah Governorate. The project scope also includes the construction of a 2.5 km ancillary (connection) road that leads to the project site, which is adjacent to the planned Manah I IPPproject site and is located 30 km south from the town of Manah (approximately 180km from the Muscat International Airport and 350 km from the Port of Sohar). The project site is situated between 340m and 350m above sea level in an undeveloped area covering an area of 680ha approximately. More detailed locational information can be found at https://www.openstreetmap.org/way/115792105.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Bank Muscat
  • Standard Chartered Bank PLC

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Sembcorp Jinko Shine Co SAOC

Implementing agencies

State-owned companies

  • China Energy Engineering Shanxi Electric Power Engineering Company

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

Bank of China (Singapore Branch) contributes $100 million to syndicated loan for 500MW Manah II Photovoltaic Independent Power Project in 2023

Interest rate (t₀)•6.55772%Interest type•Variable Interest RateMaturity•16 years

Narrative

Full Description

Project narrative

On March 13, 2023, the Omani Government awarded a build, own, and operate (BOO) contract to Sembcorp Jinko Shine Co SAOC — a special purpose vehicle registered in the Sultanate of Oman and joint venture of SembCorp Industries Ltd. (80% equity stake) and Jinko Power Technology Co., Ltd. (20% equity stake) — for the 500MW Manah II Photovoltaic Independent Power Project. Then, on December 31, 2023, Bank of China’s Singapore Branch, Bank Muscat and Standard Chartered Bank signed a $270 million syndicated debt financing agreement with Sembcorp Jinko Shine Co SAOC for the 500MW Manah II Photovoltaic Independent Power Project (IPP). The debt financing package is supported by a credit insurance policy from Sinosure, which was approved on October 9, 2023. Bank of China reportedly contributed $100 million to the syndicate and its debt reportedly carries a maturity of 16 years and an annual interest rate of SOFR plus a 1.4% margin. The total cost of the 500MW Manah II Photovoltaic Independent Power Project (IPP) is $390 million and it is being financing according to a debt-to-equity ratio of 69: 31. The project sponsors (SPV shareholders) agreed to make equity contributions worth $120 million; SembCorp Industries Ltd. agreed to contribute $96 million and Jinko Power Technology Co., Ltd. agreed to contribute $24 million. The scope of the project includes the development, financing, design, engineering, construction, ownership, operation and maintenance of the 500MW Manah II Solar IPP in the Wilayat of Manah in Oman’s Al Dakhiliyah Governorate. The project scope also includes the construction of a 2.5 km ancillary (connection) road that leads to the project site, which is adjacent to the planned Manah I IPP project site and is located 30 km south from the town of Manah (approximately 180 km from the Muscat International Airport and 350 km from the Port of Sohar). The project site is situated between 340 meters and 350 meters above sea level in an undeveloped area covering an area of 680 hectares approximately. Sembcorp Jinko Shine Co SAOC is expected to build, own and operate the Manah Solar II IPP under a 20-year power purchase agreement (PPA) with the Omani Government via Nama Power and Water Procurement (Nama PWP). China Energy Engineering Shanxi Electric Power Engineering Company is the EPC contractor responsible for implementation. The project’s environmental and social impact assessment (ESIA) was published in July 2023. A formal project commencement ceremony took place on July 24, 2023. However, construction did not commence until November 16, 2023. The power plant was originally expected to be commissioned by April 22, 2025. Commercial production started on December 29, 2024, nearly four months ahead of schedule.

Staff comments

1. This project is also known as the 588MW Manah II Photovoltaic Independent Power Project. The Chinese project title is 阿曼Manah Ⅱ 光伏发电项目 or 位于阿曼的玛娜二号光伏发电项目. 2. A summary of the project’s ESIA can be accessed in its entirety via https://www.sembcorp.com/media/qumhsy2i/nts_manah-solar-ii-independent-power-project.pdf. 3. AidData has estimated the all-in interest rate by adding 1.4% to average SOFR.