Author : Editor
Bahrain-based Instrata Capital, a regulated asset management firm specialising in infrastructure investments, has closed the acquisition of a stake in Oman's Sembcorp Salalah Independent Water and Power Project (IWPP).
The acquisition was made through Instrata's Bunyah GCC Infrastructure Fund (Bunyah) from Oman Investment Corporation.
The Sembcorp Salalah IWPP is a 445MW, 15 million imperial gallons per day combined cycle gas turbine power and water desalination plant in the southern region of Salalah.
It is under construction and is forecast to be completed by April.
The project has been developed on a build, own and operate model, and will play an important part in meeting demand in one of Oman's key growth regions.
The entire output of the project is contracted under a long-term power and water purchase agreement with Oman Power and Water Procurement Company.
"The Salalah IWPP is an important infrastructure asset for Oman," said Instrata chief executive Suhail Hajee.
"It is also a strategic addition to our existing investment portfolio in the region," he added.
"The current economic uncertainties have led to an increased focus on infrastructure investment which delivers stable cash flows to investors," Mr Hajee said.
Instrata Capital's existing investment portfolio also includes two significant IWPP investments.
In June 2009, Instrata Capital closed the acquisition of a stake in the Al Dur IWPP in Bahrain and in August 2010 it closed the acquisition of a stake in the Barka 1 IWPP in Oman.
Based on the success of Bunyah, Instrata Capital's initial fund, and growing investor appetite for stable investments capable of attractive returns, Instrata Capital is considering launching a second GCC, Mena and Turkey-focused fund following regulatory approval.
The fund will also focus on infrastructure assets making use of Instrata Capital's strong investment pipeline.
"Last year was challenging for investment in the region," said Instrata managing director Khalid Alshakrani.
"With this backdrop, we are pleased to have closed the Sembcorp Salalah acquisition. Notwithstanding a challenging economic environment, demand for additional infrastructure projects remains constant, driven by strong underlying fundamentals, including population and GDP growth and we are confident that there will be significant opportunities for additional infrastructure investment in 2012 and beyond."
Source : gulf-daily-news.com
